Reliance Steel & Aluminum Co (RS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 318,100 | 314,600 | 350,800 | 934,900 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.26 | 0.25 | 0.40 | 1.09 | 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 |
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 for Reliance Steel & Aluminum Co has fluctuated over the years based on the provided data. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Between March 31, 2020, and September 30, 2021, the cash ratio steadily increased from 0.23 to 0.98, indicating an improved ability to cover short-term obligations. However, there was a slight decrease to 0.63 by September 30, 2021.
By December 31, 2021, the ratio increased to 1.12, indicating a significant improvement in liquidity. The trend continued to fluctuate over the next quarters, reaching a peak of 1.28 on December 31, 2023.
However, by June 30, 2024, there was a notable decline in the cash ratio to 0.40, suggesting a potential liquidity challenge. This decrease continued to September 30, 2024, when the ratio dropped further to 0.25.
Overall, it is important for Reliance Steel & Aluminum Co to closely monitor its cash reserves and manage its liquidity effectively to ensure it can meet its short-term obligations in a sustainable manner.