Reliance Steel & Aluminum Co (RS)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,771,800 | 4,859,100 | 4,858,300 | 4,712,100 | 4,886,600 | 4,811,200 | 5,023,900 | 4,744,000 | 4,160,100 | 4,284,000 | 3,944,600 | 3,584,700 | 3,112,800 | 3,032,000 | 2,726,700 | 3,086,400 | 3,010,200 | 3,165,000 | 3,365,900 | 3,560,800 |
| 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 |
| Current ratio | 5.66 | 5.53 | 5.18 | 4.83 | 3.55 | 3.25 | 3.02 | 3.96 | 3.91 | 4.25 | 4.36 | 4.35 | 5.08 | 5.04 | 4.25 | 4.20 | 4.46 | 4.01 | 4.42 | 4.06 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,771,800K ÷ $843,600K
= 5.66
Reliance Steel & Aluminum Co.'s current ratio has been consistently trending upwards over the past eight quarters, reflecting a strong liquidity position. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
In Q4 2023, the current ratio stands at 5.66, indicating that the company has $5.66 in current assets for every $1 in current liabilities. This is an improvement from the previous quarter's ratio of 5.53 and continues the positive trend seen over the last two years.
The significant increase in the current ratio from Q1 2022 (3.96) to Q4 2023 (5.66) suggests that Reliance Steel & Aluminum Co. has been able to efficiently manage its working capital, increasing its liquidity and ability to meet its short-term obligations.
Overall, the rising trend in the current ratio indicates that the company is in a strong financial position with a healthy liquidity buffer to weather any short-term financial challenges.
Peer comparison
Dec 31, 2023