Reliance Steel & Aluminum Co (RS)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 3,976,400 | 4,049,000 | 4,119,700 | 4,323,000 | 4,484,400 | 4,655,500 | 4,817,500 | 5,090,200 | 5,251,300 | 5,364,800 | 5,336,900 | 4,923,700 | 4,490,300 | 3,950,600 | 3,415,600 | 2,948,100 | 2,775,100 | 2,865,700 | 3,004,300 | 3,243,200 |
| Revenue (ttm) | US$ in thousands | 13,835,000 | 14,045,700 | 14,248,400 | 14,485,400 | 14,805,900 | 15,079,400 | 15,703,600 | 16,504,500 | 17,025,000 | 17,402,900 | 17,003,100 | 15,740,700 | 14,093,300 | 12,238,700 | 10,476,900 | 9,077,400 | 8,811,900 | 9,125,600 | 9,725,900 | 10,590,100 |
| Gross profit margin | 28.74% | 28.83% | 28.91% | 29.84% | 30.29% | 30.87% | 30.68% | 30.84% | 30.84% | 30.83% | 31.39% | 31.28% | 31.86% | 32.28% | 32.60% | 32.48% | 31.49% | 31.40% | 30.89% | 30.62% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $3,976,400K ÷ $13,835,000K
= 28.74%
Reliance Steel & Aluminum Co's gross profit margin has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The trend shows a gradual increase from 30.62% in March 2020 to a peak of 32.60% in June 2021. However, after reaching this peak, the gross profit margin started to decline, reaching 28.74% by December 31, 2024.
The overall performance of the gross profit margin indicates that Reliance Steel & Aluminum Co experienced improved profitability in the initial years of the period but faced challenges in maintaining that level in the later years. This decline could be attributed to various factors such as changes in pricing, fluctuations in input costs, or shifts in consumer demand.
It is essential for stakeholders to monitor the gross profit margin closely as it reflects the company's ability to generate profits from its core business operations after deducting the cost of goods sold. Analyzing the drivers behind the fluctuations in the gross profit margin can provide insights into the company's operational efficiency and competitive positioning in the market.