Reliance Steel & Aluminum Co (RS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,739,500 | 2,506,900 | 1,948,900 | 565,800 | 1,013,500 |
| Total assets | US$ in thousands | 10,480,300 | 10,329,900 | 9,536,000 | 8,106,800 | 8,131,100 |
| Operating ROA | 16.60% | 24.27% | 20.44% | 6.98% | 12.46% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,739,500K ÷ $10,480,300K
= 16.60%
Reliance Steel & Aluminum Co.'s operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA stands at 16.60%, a decrease from the previous year's figure of 24.27%. Despite the decline, the company's performance in 2023 remains relatively strong compared to 2020 and 2019 when the operating ROA was 8.31% and 12.48%, respectively. This suggests that for each dollar of assets employed in operations, Reliance Steel & Aluminum Co. generated 16.60 cents of operating income in 2023.
The decreasing trend in operating ROA from 2022 to 2023 may indicate efficiency challenges in managing assets to generate operating income. Further analysis would be needed to determine the underlying factors contributing to this decline and to assess the company's operational effectiveness and asset utilization strategies.
Peer comparison
Dec 31, 2023