Reliance Steel & Aluminum Co (RS)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 1,080,200 1,173,400 300,500 683,500 174,300
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 843,600 1,375,300 1,065,000 613,000 675,300
Cash ratio 1.28 0.85 0.28 1.12 0.26

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,080,200K + $—K) ÷ $843,600K
= 1.28

The cash ratio of Reliance Steel & Aluminum Co. has fluctuated over the past five years, ranging from 0.38 to 1.45. The trend indicates an improvement in liquidity from 2019 to 2023, with the ratio increasing from 0.38 to 1.45. This suggests that the company has been able to enhance its ability to cover its current liabilities with its cash and cash equivalents.

In particular, the cash ratio reached a peak of 1.45 at the end of 2023, indicating that the company had $1.45 in cash and cash equivalents for every dollar of current liabilities. This implies a strong liquidity position as the company had more than enough cash on hand to meet its short-term obligations.

Overall, the increasing trend in the cash ratio of Reliance Steel & Aluminum Co. reflects a positive liquidity position that has strengthened over the past five years, highlighting the company's ability to manage its short-term liquidity needs effectively.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
Reliance Steel & Aluminum Co
RS
1.28
Olympic Steel Inc
ZEUS
0.07