Reliance Steel & Aluminum Co (RS)
Total 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 |
| Total assets | US$ in thousands | 10,480,300 | 10,329,900 | 9,536,000 | 8,106,800 | 8,131,100 |
| Total asset turnover | 1.41 | 1.65 | 1.48 | 1.09 | 1.35 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $14,805,900K ÷ $10,480,300K
= 1.41
The total asset turnover ratio of Reliance Steel & Aluminum Co. has fluctuated over the past five years. In 2023, the company achieved a total asset turnover of 1.41, indicating that for every dollar of total assets, the company generated $1.41 in revenue. This ratio has decreased compared to the previous year, where it was 1.65. The decline could suggest that the company's efficiency in generating revenue from its total assets has decreased.
Looking back at the trend over the past five years, we can see that the total asset turnover ratio has been variable. In 2022, the ratio was at its peak of 1.65, indicating strong efficiency in asset utilization. However, in 2020, the ratio was lower at 1.09, suggesting lower revenue generation relative to the total assets.
Overall, the total asset turnover ratio provides insight into how effectively the company is using its assets to generate sales. A higher ratio indicates a more efficient use of assets in generating revenue, while a declining ratio may indicate potential inefficiencies in asset utilization that could impact the company's overall financial performance. It would be beneficial for stakeholders to further investigate the underlying reasons for the fluctuations in the total asset turnover ratio to assess the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023