Reliance Steel & Aluminum Co (RS)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 318,100 | 314,600 | 350,800 | 934,900 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,213,000 | 1,272,500 | 883,500 | 857,400 | 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 |
| Quick ratio | 0.26 | 0.25 | 0.40 | 1.09 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($318,100K
+ $—K
+ $—K)
÷ $1,213,000K
= 0.26
Reliance Steel & Aluminum Co's quick ratio has shown variability over the analyzed periods from March 31, 2020, to December 31, 2024. The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio started at a low of 0.23 on March 31, 2020, indicating the company had limited liquid assets to cover its current liabilities. However, there was an improvement as the quick ratio gradually increased to 1.28 by December 31, 2023. This high quick ratio suggests the company had a significant amount of liquid assets available to cover its short-term obligations.
There was a dip in the quick ratio to 1.09 by March 31, 2024, which could be an indication of a decrease in the availability of liquid assets relative to current liabilities. The quick ratio then declined further to 0.26 by December 31, 2024, suggesting a potential liquidity concern as the company may have struggled to cover its short-term obligations with available liquid assets.
Overall, the fluctuation in Reliance Steel & Aluminum Co's quick ratio indicates changing liquidity levels over the periods analyzed, highlighting the importance of continuously monitoring liquidity to ensure the company can meet its short-term financial obligations.