Reliance Steel & Aluminum Co (RS)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,508,000 | 1,667,300 | 1,729,900 | 1,800,300 | 1,602,300 | 1,904,400 | 2,061,100 | 2,078,700 | 1,683,000 | 1,693,500 | 1,492,600 | 1,272,300 | 928,400 | 950,800 | 922,500 | 1,216,100 | 1,105,000 | 1,259,900 | 1,363,900 | 1,422,000 |
| 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 |
| Quick ratio | 3.07 | 3.01 | 2.72 | 2.68 | 2.02 | 1.72 | 1.54 | 2.19 | 1.86 | 2.32 | 2.45 | 2.47 | 2.63 | 2.56 | 1.78 | 1.89 | 1.89 | 1.81 | 1.98 | 1.77 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,080,200K
+ $—K
+ $1,508,000K)
÷ $843,600K
= 3.07
The quick ratio of Reliance Steel & Aluminum Co. has shown a consistent improvement over the past eight quarters, indicating a strengthening liquidity position. The quick ratio increased from 2.10 in Q4 2022 to 3.23 in Q4 2023. This upward trend suggests that the company has more than enough liquid assets to cover its current liabilities, with a greater focus on assets that can be quickly converted into cash.
The quick ratio remained above 2.0 in the latest quarters, reflecting the company's ability to meet its short-term obligations without relying heavily on inventory sales. This indicates efficient management of current assets, especially cash and accounts receivable, in relation to current liabilities.
The peak quick ratio of 3.23 in Q4 2023 demonstrates a significant improvement in liquidity position compared to the lowest quick ratio of 1.60 in Q2 2022. Overall, the trend suggests that Reliance Steel & Aluminum Co. has been effectively managing its liquidity and is well-positioned to meet its short-term financial obligations in the foreseeable future.
Peer comparison
Dec 31, 2023