Reliance Steel & Aluminum Co (RS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,139,900 | 1,740,700 | 2,430,400 | 1,883,100 | 478,200 |
| Revenue | US$ in thousands | 13,835,000 | 14,805,900 | 17,025,000 | 14,093,300 | 8,811,900 |
| Pretax margin | 8.24% | 11.76% | 14.28% | 13.36% | 5.43% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,139,900K ÷ $13,835,000K
= 8.24%
Reliance Steel & Aluminum Co's pretax margin has displayed a mixed performance over the past five years. The pretax margin stood at 5.43% as of December 31, 2020, indicating a moderate level of profitability before accounting for taxes. Over the subsequent years, there was a notable increase in pretax margin, reaching 13.36% by December 31, 2021, and further improving to 14.28% by December 31, 2022.
However, in the following years, there was a slight decline in the pretax margin. By December 31, 2023, the pretax margin dropped to 11.76%, and further down to 8.24% by December 31, 2024. This decrease suggests potential challenges that may have impacted profitability, such as changes in operating costs, pricing pressures, or other factors affecting the company's financial performance.
Overall, while Reliance Steel & Aluminum Co's pretax margin exhibited fluctuations during the period under review, it is essential for stakeholders to closely monitor and evaluate the company's profitability trends to assess its financial health and operational efficiency effectively.