Reliance Steel & Aluminum Co (RS)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,835,000 | 14,805,900 | 17,025,000 | 14,093,300 | 8,811,900 |
| Total assets | US$ in thousands | 10,021,800 | 10,480,300 | 10,329,900 | 9,536,000 | 8,106,800 |
| Total asset turnover | 1.38 | 1.41 | 1.65 | 1.48 | 1.09 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $13,835,000K ÷ $10,021,800K
= 1.38
Reliance Steel & Aluminum Co's total asset turnover has shown a fluctuating trend over the past five years. Starting at 1.09 in December 31, 2020, it increased to 1.48 by December 31, 2021, indicating that the company generated $1.48 in revenue for every dollar of assets during that year. The ratio continued to rise to 1.65 by December 31, 2022, reflecting a more efficient utilization of assets to generate sales.
However, the total asset turnover ratio slightly dropped to 1.41 by December 31, 2023, before further decreasing to 1.38 by December 31, 2024. This decline may suggest that the company's ability to generate sales relative to its total assets has weakened in the most recent years, possibly indicating inefficiencies in asset utilization or changes in business operations.
In summary, while there has been some fluctuation in Reliance Steel & Aluminum Co's total asset turnover over the analyzed period, it is essential for the company to closely monitor and potentially address any declines to ensure optimal asset management and revenue generation.