Reliance Steel & Aluminum Co (RS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 318,100 | 1,080,200 | 1,173,400 | 300,500 | 683,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,213,000 | 843,600 | 1,375,300 | 1,065,000 | 613,000 |
| Cash ratio | 0.26 | 1.28 | 0.85 | 0.28 | 1.12 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($318,100K
+ $—K)
÷ $1,213,000K
= 0.26
The cash ratio of Reliance Steel & Aluminum Co has shown significant fluctuations over the years. As of December 31, 2020, the cash ratio was 1.12, indicating that the company had $1.12 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the cash ratio had decreased to 0.28, suggesting a reduction in the company's liquidity position.
Subsequently, there was an improvement in the cash ratio to 0.85 as of December 31, 2022, indicating a partial recovery in the company's ability to cover its short-term obligations with cash on hand. The ratio further increased to 1.28 by December 31, 2023, signaling a stronger liquidity position for Reliance Steel & Aluminum Co.
However, by December 31, 2024, the cash ratio dropped to 0.26, reflecting a decline in the company's ability to meet its short-term liabilities with available cash reserves. Overall, the fluctuating trend in the cash ratio suggests varying levels of liquidity risk for the company over the years.