Reliance Steel & Aluminum Co (RS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,895,500 | 4,771,800 | 4,886,600 | 4,160,100 | 3,112,800 |
| Total current liabilities | US$ in thousands | 1,213,000 | 843,600 | 1,375,300 | 1,065,000 | 613,000 |
| Current ratio | 3.21 | 5.66 | 3.55 | 3.91 | 5.08 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,895,500K ÷ $1,213,000K
= 3.21
Reliance Steel & Aluminum Co's current ratio has shown fluctuations over the past five years. The company's current ratio was 5.08 as of December 31, 2020, indicating a strong ability to cover its short-term obligations with current assets. However, by December 31, 2021, the current ratio decreased to 3.91, which suggests a slight reduction in liquidity.
The trend continued in the following years, with the current ratio further declining to 3.55 by December 31, 2022. This could indicate potential difficulties in meeting short-term obligations with current assets.
On a positive note, as of December 31, 2023, the current ratio improved significantly to 5.66, reflecting a strong liquidity position and ability to cover short-term obligations.
However, the ratio decreased again to 3.21 by December 31, 2024, showing a potential concern regarding liquidity management and the company's ability to meet short-term liabilities with current assets.
Overall, the fluctuating current ratio of Reliance Steel & Aluminum Co over the past five years suggests varying levels of liquidity and a need for careful monitoring of the company's short-term financial health.