Reliance Steel & Aluminum Co (RS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 28.74% | 28.83% | 28.91% | 29.84% | 30.29% | 30.87% | 30.68% | 30.84% | 30.84% | 30.83% | 31.39% | 31.28% | 31.86% | 32.28% | 32.60% | 32.48% | 31.49% | 31.40% | 30.89% | 30.62% |
| Operating profit margin | 8.38% | 9.56% | 10.24% | 11.18% | 11.75% | 12.40% | 12.92% | 13.96% | 14.72% | 15.02% | 15.37% | 14.53% | 13.83% | 12.83% | 11.29% | 9.26% | 6.42% | 6.65% | 7.07% | 7.89% |
| Pretax margin | 8.24% | 9.54% | 10.30% | 11.24% | 11.76% | 12.29% | 12.67% | 13.58% | 14.28% | 14.54% | 14.94% | 14.11% | 13.36% | 12.27% | 10.46% | 8.31% | 5.43% | 5.72% | 6.30% | 7.15% |
| Net profit margin | 6.33% | 7.42% | 7.99% | 8.67% | 9.02% | 9.38% | 9.63% | 10.30% | 10.81% | 10.98% | 11.25% | 10.61% | 10.03% | 9.16% | 7.86% | 6.33% | 4.19% | 4.44% | 4.83% | 5.41% |
The analysis of Reliance Steel & Aluminum Co's profitability ratios indicates a fluctuating trend over the past few years.
1. Gross Profit Margin: The gross profit margin has shown a slight decrease from 30.62% as of March 31, 2020, to 28.74% as of December 31, 2024, with some variations in between. This suggests a decline in the company's ability to generate profit from its core operations.
2. Operating Profit Margin: The operating profit margin started at 7.89% as of March 31, 2020, increased steadily to a peak of 15.37% as of June 30, 2022, then gradually declined to 8.38% as of December 31, 2024. Despite the fluctuations, the operating profit margin generally remained positive, indicating operational efficiency but with some variability.
3. Pretax Margin: The pretax margin trended upwards from 7.15% as of March 31, 2020, to 14.54% as of December 31, 2022, before experiencing a slight decrease to 8.24% as of December 31, 2024. This ratio reflects the company's ability to generate profits before tax expenses and shows some volatility in profitability over the period.
4. Net Profit Margin: The net profit margin also demonstrated an upward trajectory from 5.41% as of March 31, 2020, to 11.25% as of June 30, 2022, before declining to 6.33% as of March 31, 2024. The net profit margin indicates the company's efficiency in converting revenue into profit after accounting for all expenses, depicting some fluctuations in profitability.
In summary, Reliance Steel & Aluminum Co has shown varying profitability ratios over the analyzed period, with some margins increasing, reaching peaks, and then decreasing. This suggests fluctuations in the company's ability to generate profits from its operations and manage expenses effectively. Further analysis and examination of the company's financial performance and strategies may be needed to understand the underlying factors contributing to these trends.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 8.73% | 10.12% | 10.90% | 11.72% | 12.67% | 13.47% | 14.48% | 16.66% | 17.81% | 18.73% | 18.39% | 16.51% | 14.82% | 12.12% | 9.22% | 6.72% | 4.55% | 5.06% | 6.09% | 7.09% |
| Return on total capital | 16.05% | 18.25% | 19.25% | 20.63% | 22.83% | 24.60% | 26.81% | 31.30% | 35.17% | 38.12% | 38.20% | 35.22% | 32.24% | 26.34% | 20.79% | 15.63% | 13.71% | 15.13% | 16.68% | 19.83% |
| Return on equity (ROE) | 12.12% | 14.18% | 14.93% | 15.83% | 17.30% | 18.30% | 19.86% | 23.14% | 25.96% | 27.91% | 27.91% | 25.56% | 23.22% | 19.13% | 14.62% | 10.75% | 7.22% | 8.04% | 9.49% | 11.71% |
Reliance Steel & Aluminum Co's profitability ratios demonstrate a positive trend over the analyzed periods. The Operating Return on Assets (Operating ROA) consistently increased from 10.34% in March 2020 to 25.63% in September 2022, before slightly declining to 13.04% by September 2024. This indicates that the company efficiently generated operating profits from its assets during most of the period.
Similarly, the Return on Assets (ROA) showed a steady improvement from 7.09% in March 2020 to 10.90% in June 2024, with a slight decline to 8.73% by December 2024. This highlights the company's ability to generate profits relative to its total assets.
Furthermore, the Return on Total Capital exhibited a consistent uptrend, reaching a peak of 38.20% in June 2022 before gradually decreasing to 16.05% by December 2024. This ratio reflects the company's efficiency in generating returns for both debt and equity investors over time.
Lastly, the Return on Equity (ROE) followed a similar pattern of improvement, increasing from 11.71% in March 2020 to 27.91% in June 2022 before stabilizing around 14-15% by December 2024. This indicates the company's ability to generate returns for its equity shareholders throughout the analyzed periods.
Overall, Reliance Steel & Aluminum Co's profitability ratios demonstrate a strong performance in efficiently utilizing its assets and capital to generate profits and returns for its stakeholders over the analyzed period.