Reliance Steel & Aluminum Co (RS)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,835,000 | 14,045,700 | 14,248,400 | 14,485,400 | 14,805,900 | 15,079,400 | 15,703,600 | 16,504,500 | 17,025,000 | 17,402,900 | 17,003,100 | 15,740,700 | 14,093,300 | 12,238,700 | 10,476,900 | 9,077,400 | 8,811,900 | 9,125,600 | 9,725,900 | 10,590,100 |
| Total current assets | US$ in thousands | 3,895,500 | 4,212,500 | 4,432,500 | 4,923,400 | 4,771,800 | 4,859,100 | 4,858,300 | 4,712,100 | 4,886,600 | 4,811,200 | 5,023,900 | 4,744,000 | 4,160,100 | 4,284,000 | 3,944,600 | 3,584,700 | 3,112,800 | 3,032,000 | 2,726,700 | 3,086,400 |
| Total current liabilities | US$ in thousands | 1,213,000 | 1,272,500 | 883,500 | 857,400 | 843,600 | 878,700 | 937,800 | 975,400 | 1,375,300 | 1,479,200 | 1,665,600 | 1,198,300 | 1,065,000 | 1,007,100 | 904,900 | 823,700 | 613,000 | 601,900 | 642,000 | 735,600 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,835,000K ÷ ($3,895,500K – $1,213,000K)
= 5.16
The working capital turnover ratio for Reliance Steel & Aluminum Co has shown fluctuations over the last few years, indicating changes in the efficiency of the company in managing its working capital.
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio generally indicates effective management of working capital.
From March 31, 2020, to June 30, 2020, the ratio increased from 4.50 to 4.67, suggesting an improvement in working capital efficiency. However, the ratio declined in the subsequent quarters, reaching a low of 3.29 on March 31, 2021. This downward trend indicates potential inefficiencies in managing working capital during that period.
The ratio started to increase again from June 30, 2021, and peaked at 5.22 on September 30, 2022. This significant improvement suggests that the company was able to generate more sales revenue from its working capital during this period.
However, the ratio decreased slightly in the following quarters but remained above 4, indicating overall efficiency in utilizing working capital. The ratio stood at 5.16 on December 31, 2024, showing that the company improved its working capital turnover compared to previous periods.
Overall, the working capital turnover ratio for Reliance Steel & Aluminum Co has fluctuated over the years, but the company seems to have made efforts to optimize the use of its working capital to generate sales revenue efficiently.