Reliance Steel & Aluminum Co (RS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,771,800 | 4,886,600 | 4,160,100 | 3,112,800 | 3,010,200 |
| Total current liabilities | US$ in thousands | 843,600 | 1,375,300 | 1,065,000 | 613,000 | 675,300 |
| Current ratio | 5.66 | 3.55 | 3.91 | 5.08 | 4.46 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,771,800K ÷ $843,600K
= 5.66
The current ratio of Reliance Steel & Aluminum Co. has fluctuated over the past five years. In 2023, the current ratio stands at 5.66, indicating a significant increase compared to the previous year. This suggests that the company's current assets exceed its current liabilities by a wide margin, indicating a strong liquidity position.
The current ratio was at its lowest in 2022 at 3.55, indicating a comparatively weaker liquidity position. However, the company managed to improve its liquidity in 2023 with a current ratio of 5.66, reflecting an improvement in its ability to meet short-term obligations.
Overall, Reliance Steel & Aluminum Co. has maintained a relatively healthy current ratio over the past five years, with the ratio consistently above 3. This indicates that the company has sufficient current assets to cover its short-term liabilities, providing a cushion against financial distress.
Peer comparison
Dec 31, 2023