Reliance Steel & Aluminum Co (RS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,864,800 | 14,328,300 | 11,952,900 | 6,036,800 | 7,644,400 |
| Payables | US$ in thousands | 410,300 | 412,400 | 453,900 | 259,300 | 275,000 |
| Payables turnover | 31.35 | 34.74 | 26.33 | 23.28 | 27.80 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,864,800K ÷ $410,300K
= 31.35
The payables turnover ratio for Reliance Steel & Aluminum Co. has fluctuated over the past five years, ranging from 21.16 to 28.55. This ratio indicates the number of times a company pays off its accounts payable during a specific period. A higher payables turnover ratio typically suggests that the company is managing its accounts payable efficiently by paying off its suppliers more frequently.
In the most recent year, as of December 31, 2023, the payables turnover ratio decreased to 25.00 from 28.55 in 2022. This decline may indicate that the company took longer to pay off its accounts payable relative to the prior year, potentially signaling a change in the company's payment practices or relationships with suppliers.
Overall, an analysis of the payables turnover ratio for Reliance Steel & Aluminum Co. shows some variability in the company's management of its accounts payable over the past five years, and it may be worth further investigation to understand the reasons behind the fluctuations observed.
Peer comparison
Dec 31, 2023