Reliance Steel & Aluminum Co (RS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.86 | 4.53 | 4.43 | 4.69 | 5.05 | 4.94 | 4.94 | 5.76 | 5.90 | 5.53 | 4.96 | 5.38 | 4.65 | 4.41 | 4.29 | 4.15 | 4.25 | 4.40 | 4.50 | 4.51 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 5.16 | 4.78 | 4.01 | 3.56 | 3.77 | 3.79 | 4.01 | 4.42 | 4.85 | 5.22 | 5.06 | 4.44 | 4.55 | 3.73 | 3.45 | 3.29 | 3.53 | 3.76 | 4.67 | 4.50 |
Inventory Turnover:
Reliance Steel & Aluminum Co's inventory turnover has shown a fluctuating trend over the past several quarters, ranging from a low of 4.15 times in March 2021 to a high of 5.90 times in December 2022. The latest reported turnover for December 31, 2024, is 4.86 times, indicating that the company is moving its inventory at a healthy rate.
Receivables Turnover:
No data is available for receivables turnover, which makes it challenging to assess how efficiently the company is collecting its receivables from customers. It is important for the company to track this ratio to ensure the timely collection of outstanding payments.
Payables Turnover:
Similar to receivables turnover, there is no data provided for payables turnover. Payables turnover ratio assesses how quickly a company pays off its suppliers. Without this information, it is difficult to analyze the company's payment practices.
Working Capital Turnover:
The working capital turnover ratio for Reliance Steel & Aluminum Co has varied over the quarters, with a low of 3.29 in March 2021 and a high of 5.22 in September 2022. This ratio measures how efficiently the company is utilizing its working capital to generate sales. The latest reported turnover for December 31, 2024, stands at 5.16, indicating an improvement in the company's efficiency in utilizing its working capital.
In summary, the inventory turnover ratio shows a positive trend, while the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall efficiency in managing its assets and liabilities. The working capital turnover ratio has shown fluctuations but indicates an improvement in recent quarters, suggesting better utilization of working capital in generating sales.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 75.04 | 80.54 | 82.48 | 77.83 | 72.25 | 73.89 | 73.84 | 63.36 | 61.86 | 65.97 | 73.59 | 67.83 | 78.49 | 82.70 | 85.02 | 87.96 | 85.88 | 82.97 | 81.05 | 80.98 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Reliance Steel & Aluminum Co, we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
The days of inventory on hand measure how many days, on average, the company holds onto its inventory before it is sold. In the period from March 31, 2020, to December 31, 2024, the DOH for Reliance Steel & Aluminum Co fluctuates, showing a general decreasing trend. The company's DOH decreased from 80.98 days on March 31, 2020, to 75.04 days on December 31, 2024. A lower DOH indicates that the company is managing its inventory efficiently, potentially freeing up working capital and reducing carrying costs.
2. Days of Sales Outstanding (DSO):
The days of sales outstanding measures the average number of days it takes for the company to collect revenue after making a sale. Unfortunately, data for DSO is not available for the period provided (up to December 31, 2024), preventing a detailed analysis of this metric. Typically, a lower DSO indicates that the company is collecting revenue more quickly, improving cash flow and liquidity.
3. Number of Days of Payables:
Data for the number of days of payables is not available for the period provided (up to December 31, 2024), making it impossible to analyze how long it takes the company to pay its bills. This metric is essential as a longer period may indicate that the company is managing its cash flow effectively or potentially stretching payments to suppliers.
In summary, based on the data provided, Reliance Steel & Aluminum Co has shown improvements in managing its inventory efficiency, as evidenced by the decreasing trend in Days of Inventory on Hand. However, further insights into Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive analysis of the company's overall activity ratios.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.38 | 1.36 | 1.36 | 1.35 | 1.40 | 1.44 | 1.50 | 1.62 | 1.65 | 1.71 | 1.63 | 1.56 | 1.48 | 1.32 | 1.17 | 1.06 | 1.09 | 1.14 | 1.26 | 1.31 |
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets.
For Reliance Steel & Aluminum Co, the fixed asset turnover ratio has shown a steady improvement over the years, indicating that the company is utilizing its fixed assets more effectively. The ratio increased from 5.91 in March 2020 to a peak of 8.10 in September 2022, before slightly decreasing to 6.24 in September 2023 and remaining stable around that level in subsequent periods.
This trend suggests that Reliance Steel & Aluminum Co has been successful in maximizing the productivity of its fixed assets to generate sales.
On the other hand, the total asset turnover ratio measures how well a company utilizes all its assets to generate revenue.
Reliance Steel & Aluminum Co's total asset turnover ratio declined from 1.31 in March 2020 to a low of 1.06 in March 2021, indicating that the company's overall asset utilization for revenue generation decreased temporarily. However, the ratio started to improve afterwards and reached 1.62 in March 2023.
Overall, the improvement in the total asset turnover ratio suggests that the company has been able to efficiently use its assets to drive revenue growth.
In conclusion, the improvement in both fixed asset turnover and total asset turnover ratios indicates that Reliance Steel & Aluminum Co has effectively managed its assets to drive sales growth and enhance operational efficiency.