Reliance Steel & Aluminum Co (RS)
Operating profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,739,500 | 1,869,200 | 2,028,200 | 2,304,400 | 2,506,900 | 2,614,700 | 2,613,800 | 2,286,700 | 1,948,900 | 1,569,700 | 1,182,600 | 840,800 | 565,800 | 607,300 | 688,000 | 836,000 | 1,013,500 | 938,000 | 911,200 | 971,900 |
| Revenue (ttm) | US$ in thousands | 14,805,900 | 15,095,900 | 15,714,200 | 16,509,200 | 17,025,000 | 17,403,100 | 17,003,300 | 15,740,800 | 14,093,300 | 12,238,900 | 10,477,000 | 9,078,600 | 8,811,900 | 9,146,800 | 9,742,300 | 10,597,400 | 10,974,000 | 11,271,800 | 11,580,900 | 11,710,000 |
| Operating profit margin | 11.75% | 12.38% | 12.91% | 13.96% | 14.72% | 15.02% | 15.37% | 14.53% | 13.83% | 12.83% | 11.29% | 9.26% | 6.42% | 6.64% | 7.06% | 7.89% | 9.24% | 8.32% | 7.87% | 8.30% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,739,500K ÷ $14,805,900K
= 11.75%
Reliance Steel & Aluminum Co.'s operating profit margin has exhibited a decreasing trend over the past eight quarters. The margin declined from 14.72% in Q4 2022 to 11.75% in Q4 2023. This downward trend indicates that the company's operating expenses may be rising at a faster rate than its operating revenues, resulting in lower profitability on each dollar of sales. It is noteworthy that the operating profit margin peaked at 15.40% in Q2 2022 before gradually decreasing in subsequent periods. This suggests that management may need to focus on strategies to control costs and improve operational efficiency to enhance profitability in the coming quarters.
Peer comparison
Dec 31, 2023