Reliance Steel & Aluminum Co (RS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.11% | 15.84% | 15.19% | 31.49% | 30.34% |
| Operating profit margin | 11.75% | 14.72% | 13.83% | 6.42% | 9.24% |
| Pretax margin | 11.73% | 14.25% | 13.33% | 5.39% | 8.43% |
| Net profit margin | 9.02% | 10.81% | 10.03% | 4.19% | 6.39% |
The profitability ratios of Reliance Steel & Aluminum Co. have shown some fluctuations over the past five years. The gross profit margin has remained relatively stable, ranging from 30.34% in 2019 to 31.86% in 2021, indicating the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin has varied more significantly, with a peak of 14.72% in 2022 and a low of 7.65% in 2020. This suggests that the company's operating expenses, such as selling, general, and administrative costs, have impacted its profitability over the years.
Similarly, the pretax margin has fluctuated, reaching a high of 14.28% in 2022 and a low of 5.43% in 2020. This ratio reflects the company's ability to generate profit before accounting for taxes on its operations.
The net profit margin, which represents the company's bottom line profitability, has also shown variability, ranging from 4.19% in 2020 to 10.81% in 2022. The 9.02% net profit margin in 2023 indicates that the company retains about 9.02% of each dollar of revenue as profit after all expenses have been deducted.
Overall, while Reliance Steel & Aluminum Co. has demonstrated resilience in maintaining its gross profit margin, the fluctuations in its operating profit, pretax, and net profit margins suggest that the company has faced challenges in managing its operating expenses and achieving consistent profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.60% | 24.27% | 20.44% | 6.98% | 12.46% |
| Return on assets (ROA) | 12.75% | 17.81% | 14.82% | 4.55% | 8.63% |
| Return on total capital | 19.62% | 30.47% | 25.22% | 8.38% | 15.06% |
| Return on equity (ROE) | 17.30% | 25.96% | 23.22% | 7.22% | 13.47% |
Reliance Steel & Aluminum Co. has shown a positive trend in its profitability ratios over the five-year period from 2019 to 2023.
- Operating return on assets (Operating ROA) has fluctuated but generally remained healthy, indicating that the company is effectively generating profit from its assets. The ratio ranged from a low of 8.31% in 2020 to a high of 24.27% in 2022, with a notable increase in 2023 to 16.60%.
- Return on assets (ROA) also displayed steady improvement, reflecting the company's ability to generate profits relative to its total assets. The ratio increased from 4.55% in 2020 to 12.75% in 2023, demonstrating consistent growth in this aspect.
- Return on total capital has also shown a positive trajectory over the period, with the ratio rising steadily from 9.97% in 2020 to 19.62% in 2023. This suggests that Reliance Steel & Aluminum Co. is effectively utilizing its capital to generate returns for its investors.
- Return on equity (ROE) has exhibited a similar pattern of improvement, indicating that the company is efficiently utilizing shareholder equity to generate profits. The ratio increased from 7.22% in 2020 to 17.30% in 2023, reflecting strong performance in this area.
Overall, the profitability ratios of Reliance Steel & Aluminum Co. demonstrate a positive trend over the five-year period, indicating effective management of assets, capital, and equity to generate returns for the company and its shareholders.