Reliance Steel & Aluminum Co (RS)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,160,000 | 1,343,300 | 1,459,400 | 1,619,000 | 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 |
| Total assets | US$ in thousands | 10,021,800 | 10,300,800 | 10,448,100 | 10,712,200 | 10,547,800 | 10,492,900 | 10,440,400 | 10,203,200 | 10,329,900 | 10,202,200 | 10,402,700 | 10,114,200 | 9,536,000 | 9,252,400 | 8,930,000 | 8,549,000 | 8,106,800 | 7,998,700 | 7,724,100 | 8,085,500 |
| Operating ROA | 11.57% | 13.04% | 13.97% | 15.11% | 16.49% | 17.81% | 19.43% | 22.59% | 24.27% | 25.63% | 25.13% | 22.61% | 20.44% | 16.97% | 13.24% | 9.84% | 6.98% | 7.59% | 8.91% | 10.34% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,160,000K ÷ $10,021,800K
= 11.57%
Operating return on assets (operating ROA) is a key financial metric that measures a company's operating efficiency in generating profits from its assets. For Reliance Steel & Aluminum Co, the operating ROA has shown a fluctuating trend from 2020 to 2024. From March 2020 to March 2021, the operating ROA increased steadily from 10.34% to 9.84%, indicating an improvement in the company's ability to generate operating profits relative to its total assets.
The operating ROA then saw a significant jump between March 2021 and June 2022, reaching its peak at 25.13% in June 2022. This sharp increase suggests a period of exceptional operational performance and efficiency in utilizing the company's assets to generate profits.
However, after June 2022, the operating ROA started to decline gradually, dropping to 11.57% by December 2024. This decline indicates a potential decrease in operating efficiency and profitability relative to the company's asset base over the period.
Overall, the fluctuation in Reliance Steel & Aluminum Co's operating ROA over the years highlights the need for investors and analysts to closely monitor the company's operational performance and asset utilization to assess its long-term financial sustainability and growth prospects.