Reliance Steel & Aluminum Co (RS)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,843,000 | 12,989,900 | 13,455,300 | 13,981,500 | 14,301,900 | 14,574,700 | 14,179,500 | 13,245,000 | 11,934,600 | 9,985,900 | 8,611,500 | 7,554,900 | 7,565,900 | 7,789,000 | 8,310,200 | 9,029,400 | 7,148,900 | 7,599,500 | 7,349,800 | 6,858,700 |
| Inventory | US$ in thousands | 2,043,200 | 2,110,200 | 2,202,300 | 1,981,400 | 1,995,300 | 2,175,800 | 2,352,100 | 2,010,300 | 2,065,000 | 1,877,800 | 1,644,800 | 1,477,000 | 1,420,400 | 1,423,000 | 1,492,600 | 1,630,000 | 1,645,700 | 1,669,500 | 1,787,100 | 1,936,900 |
| Inventory turnover | 6.29 | 6.16 | 6.11 | 7.06 | 7.17 | 6.70 | 6.03 | 6.59 | 5.78 | 5.32 | 5.24 | 5.12 | 5.33 | 5.47 | 5.57 | 5.54 | 4.34 | 4.55 | 4.11 | 3.54 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,843,000K ÷ $2,043,200K
= 6.29
The inventory turnover ratio for Reliance Steel & Aluminum Co. has been fairly consistent over the past eight quarters, ranging from 4.94 to 5.90 times. This indicates that the company efficiently manages its inventory by converting it into sales multiple times within a given period. A higher inventory turnover ratio typically suggests more effective inventory management and may indicate that the company is selling products quickly, minimizing carrying costs and potential obsolescence.
Although the ratio fluctuates slightly, it has generally remained above 4.94 times, reflecting the company's ability to effectively control its inventory levels and meet customer demand promptly. The peak in Q4 2022 at 5.90 times indicates a particularly strong performance in converting inventory to sales during that period. Overall, the consistent and relatively high inventory turnover ratios suggest that Reliance Steel & Aluminum Co. has a well-organized inventory management system in place.
Peer comparison
Dec 31, 2023
Dec 31, 2023