Reliance Steel & Aluminum Co (RS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 13.26% | 13.95% | 14.37% | 15.31% | 15.99% | 16.25% | 16.61% | 15.86% | 15.32% | 18.02% | 21.89% | 26.49% | 31.49% | 31.33% | 30.84% | 30.60% | 30.34% | 28.79% | 28.19% | 28.42% |
| 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% |
| Pretax margin | 11.73% | 12.25% | 12.64% | 13.55% | 14.25% | 14.52% | 14.91% | 14.08% | 13.33% | 12.24% | 10.43% | 8.28% | 5.40% | 5.68% | 6.26% | 7.11% | 8.43% | 7.45% | 7.04% | 7.47% |
| Net profit margin | 9.02% | 9.36% | 9.62% | 10.30% | 10.81% | 10.98% | 11.25% | 10.61% | 10.03% | 9.17% | 7.87% | 6.34% | 4.20% | 4.44% | 4.83% | 5.41% | 6.40% | 5.53% | 5.26% | 5.61% |
Reliance Steel & Aluminum Co.'s profitability ratios exhibit consistent performance over the past eight quarters. The company's gross profit margin has remained relatively stable, ranging between 30.68% and 30.87%. This implies that the company has been effectively managing its cost of goods sold.
However, the operating profit margin has shown a slight downward trend, declining from 15.40% in Q2 2022 to 11.75% in Q4 2023. This indicates that the company's operating expenses relative to revenue have increased, impacting overall profitability.
Similarly, the pretax margin has also experienced a gradual decrease over the periods, falling from 14.94% in Q2 2022 to 11.76% in Q4 2023. This suggests that the company's pre-tax income as a percentage of revenue has been declining.
On the other hand, the net profit margin has shown a consistent decline from 11.25% in Q2 2022 to 9.02% in Q4 2023. This indicates that the company's net income relative to total revenue has been decreasing, potentially due to higher taxes or other expenses impacting profitability.
Overall, while Reliance Steel & Aluminum Co. has maintained a relatively stable gross profit margin, its operating profit margin, pretax margin, and net profit margin have shown a downward trend, signaling potential challenges in cost management or revenue generation that could impact overall profitability in the future.
Return on investment
| 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 return on assets (Operating ROA) | 16.60% | 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% | 12.46% | 11.54% | 10.94% | 11.43% |
| Return on assets (ROA) | 12.75% | 13.47% | 14.48% | 16.66% | 17.81% | 18.73% | 18.39% | 16.51% | 14.82% | 12.13% | 9.23% | 6.73% | 4.56% | 5.07% | 6.10% | 7.10% | 8.64% | 7.66% | 7.31% | 7.72% |
| Return on total capital | 19.62% | 21.08% | 23.16% | 27.16% | 30.47% | 32.74% | 32.70% | 27.97% | 25.22% | 20.92% | 16.26% | 12.04% | 8.38% | 9.09% | 10.78% | 12.54% | 15.06% | 14.10% | 13.23% | 13.98% |
| Return on equity (ROE) | 17.30% | 18.30% | 19.86% | 23.14% | 25.96% | 27.91% | 27.91% | 25.56% | 23.22% | 19.15% | 14.63% | 10.77% | 7.23% | 8.05% | 9.51% | 11.73% | 13.49% | 12.28% | 12.32% | 13.59% |
Over the past eight quarters, Reliance Steel & Aluminum Co.'s profitability ratios have displayed a consistent trend of decline in all key metrics. The Operating ROA has decreased from 24.27% in Q4 2022 to 16.60% in Q4 2023, while ROA has decreased from 17.81% in Q4 2022 to 12.75% in Q4 2023. Return on total capital and ROE also show a downward trend over the period.
This decline may indicate potential challenges in efficiently utilizing assets and capital to generate profits. It suggests that the company may be facing increased costs, declining margins, or operational inefficiencies impacting its overall profitability.
It is essential for Reliance Steel & Aluminum Co. to closely monitor and address the factors contributing to this decline to improve profitability in the future and ensure long-term financial sustainability.