Reliance Steel & Aluminum Co (RS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 875,200 | 1,335,900 | 1,840,100 | 1,413,000 | 369,100 |
| Total assets | US$ in thousands | 10,021,800 | 10,480,300 | 10,329,900 | 9,536,000 | 8,106,800 |
| ROA | 8.73% | 12.75% | 17.81% | 14.82% | 4.55% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $875,200K ÷ $10,021,800K
= 8.73%
Reliance Steel & Aluminum Co's return on assets (ROA) has shown a noticeable increase over the past few years. In December 31, 2020, the ROA was 4.55%, indicating a relatively moderate performance. However, by December 31, 2024, the ROA had increased to 8.73%, showing a positive trajectory overall. The most notable improvement occurred between December 31, 2020, and December 31, 2023, where the ROA increased from 4.55% to 12.75%. The company's ability to generate earnings relative to its total assets has improved significantly during this period, suggesting effective asset utilization and overall financial health. However, the decrease in ROA from 17.81% in December 31, 2022, to 12.75% in December 31, 2023, warrants further investigation to understand the underlying reasons for the decline. This analysis indicates that Reliance Steel & Aluminum Co has shown improvements in its asset efficiency and profitability over the analyzed period, with a notable increase in ROA.