Reliance Steel & Aluminum Co (RS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,805,900 | 17,025,000 | 14,093,300 | 8,811,900 | 10,973,800 |
| Property, plant and equipment | US$ in thousands | 2,248,400 | 1,974,600 | 1,836,800 | 1,792,200 | 1,795,200 |
| Fixed asset turnover | 6.59 | 8.62 | 7.67 | 4.92 | 6.11 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,805,900K ÷ $2,248,400K
= 6.59
Reliance Steel & Aluminum Co.'s fixed asset turnover has experienced fluctuations over the past five years. The ratio was highest in 2022 at 8.62, indicating that the company generated $8.62 in revenue for every dollar invested in fixed assets during that year. This suggests efficient utilization of fixed assets to generate sales.
In contrast, the fixed asset turnover ratio decreased to 4.92 in 2020, signaling a decline in efficiency in generating sales from fixed assets. The ratio then increased in 2021 to 7.67, indicating an improvement in asset utilization efficiency.
Overall, the company's fixed asset turnover has been relatively high, demonstrating a strong ability to generate revenue from its fixed asset base in most years. However, the fluctuations in the ratio indicate that the company's efficiency in utilizing fixed assets to generate sales may vary from year to year, potentially influenced by factors such as operational performance, investments in new assets, or changes in the business environment.
Peer comparison
Dec 31, 2023