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.


Peer comparison

Dec 31, 2023

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