Reliance Steel & Aluminum Co (RS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,335,900 | 1,840,100 | 1,413,000 | 369,100 | 701,500 |
| Total assets | US$ in thousands | 10,480,300 | 10,329,900 | 9,536,000 | 8,106,800 | 8,131,100 |
| ROA | 12.75% | 17.81% | 14.82% | 4.55% | 8.63% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,335,900K ÷ $10,480,300K
= 12.75%
Reliance Steel & Aluminum Co.'s return on assets (ROA) has fluctuated over the past five years. The ROA was 12.75% at the end of 2023, lower than the 17.81% recorded in 2022 but higher than the 14.82% in 2021. The company experienced a significant improvement in ROA from 2020, where it was 4.55%, to 2021. Comparing 2023 to 2019, there was a decline from 8.63% to 12.75%.
Overall, while there have been variations from year to year, Reliance Steel & Aluminum Co.'s ROA demonstrates positive performance, indicating efficient utilization of assets to generate profits. It is essential for the company to continue monitoring and managing its asset utilization effectively to sustain and potentially improve its return on assets in the future.
Peer comparison
Dec 31, 2023