Reliance Steel & Aluminum Co (RS)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,835,000 | 14,045,700 | 14,248,400 | 14,485,400 | 14,805,900 | 15,079,400 | 15,703,600 | 16,504,500 | 17,025,000 | 17,402,900 | 17,003,100 | 15,740,700 | 14,093,300 | 12,238,700 | 10,476,900 | 9,077,400 | 8,811,900 | 9,125,600 | 9,725,900 | 10,590,100 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 2,416,700 | 2,339,000 | 2,242,100 | 2,191,000 | 2,147,400 | 2,109,800 | 2,068,100 | 2,061,400 | 2,002,400 | 2,006,800 | 1,769,700 | 1,792,200 | 1,799,400 | 1,809,300 | 1,791,700 |
| Fixed asset turnover | — | — | — | — | — | 6.24 | 6.71 | 7.36 | 7.77 | 8.10 | 8.06 | 7.61 | 6.84 | 6.11 | 5.22 | 5.13 | 4.92 | 5.07 | 5.38 | 5.91 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $13,835,000K ÷ $—K
= —
The fixed asset turnover ratio for Reliance Steel & Aluminum Co has shown a general increasing trend over the years, reflecting the company's ability to efficiently utilize its fixed assets to generate revenue.
From March 2020 to June 2022, the ratio steadily increased from 5.91 to 8.06, indicating an improvement in the company's efficiency in generating sales from its fixed assets. This upward trend suggests that the company has been able to increase its revenue relative to the value of its fixed assets during this period.
However, from September 2022 to March 2023, there was a slight decline in the fixed asset turnover ratio from 8.10 to 6.71. This drop may indicate a decrease in the company's ability to generate revenue from its fixed assets efficiently during this period.
From March 2023 to December 2023, the fixed asset turnover ratio continued to decrease, reaching 6.24 by September 2023. This downward trend could be a cause for concern as it suggests a further decline in the company's efficiency in utilizing its fixed assets to generate sales.
Unfortunately, data for the fixed asset turnover ratio is not available from December 2023 onwards, so it is not possible to assess the latest performance trend in this aspect.
In conclusion, the fixed asset turnover ratio of Reliance Steel & Aluminum Co has shown fluctuations over the years, with periods of improvement followed by declines. It is important for the company to continue monitoring and managing its fixed asset turnover ratio to ensure efficient utilization of resources for revenue generation.