Reliance Steel & Aluminum Co (RS)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,080,200 | 976,900 | 816,300 | 816,200 | 1,173,400 | 643,700 | 504,500 | 548,000 | 300,500 | 638,400 | 727,600 | 760,300 | 683,500 | 591,600 | 222,700 | 172,100 | 174,300 | 166,000 | 141,500 | 133,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 675,300 | 788,500 | 760,800 | 877,400 |
| Cash ratio | 1.28 | 1.11 | 0.87 | 0.84 | 0.85 | 0.44 | 0.30 | 0.46 | 0.28 | 0.63 | 0.80 | 0.92 | 1.12 | 0.98 | 0.35 | 0.23 | 0.26 | 0.21 | 0.19 | 0.15 |
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 shown fluctuating trends over the past eight quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has varied between 0.37 and 1.45 during this period.
In Q4 2023, the cash ratio was 1.45, indicating that the company had $1.45 in cash and cash equivalents for every $1 of current liabilities. This was an improvement from the previous quarter's ratio of 1.23.
The increasing cash ratio trend from Q1 2023 to Q4 2023 suggests that Reliance Steel & Aluminum Co. has been building up its cash reserves relative to its short-term obligations, which may signify improved liquidity and financial strength.
However, it is important to note that the cash ratio can be influenced by various factors such as changes in working capital management, capital expenditures, and debt repayment schedules. Therefore, a thorough analysis of the company's cash management practices and overall financial position is necessary to gain a holistic understanding of its liquidity health.