Reliance Steel & Aluminum Co (RS)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 1,335,900 1,413,700 1,512,200 1,699,900 1,840,100 1,910,900 1,913,100 1,669,400 1,413,000 1,122,200 824,100 575,200 370,000 405,800 470,900 573,800 702,200 623,200 608,800 656,500
Total assets US$ in thousands 10,480,300 10,492,900 10,440,400 10,203,200 10,329,900 10,202,200 10,402,700 10,114,200 9,536,000 9,252,400 8,930,000 8,549,000 8,106,800 7,998,700 7,724,100 8,085,500 8,131,100 8,130,900 8,327,100 8,504,200
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,335,900K ÷ $10,480,300K
= 12.75%

Reliance Steel & Aluminum Co.'s return on assets (ROA) has exhibited a declining trend over the past eight quarters, starting at 16.51% in Q1 2022 and dropping to 12.75% in Q4 2023. This suggests that the company's ability to generate profits from its assets has been gradually decreasing.

The decreasing trend in ROA could be an indication of declining efficiency in utilizing the company's assets to generate earnings. It is important for investors and stakeholders to further analyze the reasons behind this trend and assess whether the company's asset utilization and profitability are in line with industry standards and peer companies.

Additionally, it would be beneficial for the company to undertake measures to improve its ROA, such as optimizing asset management, cost control, or exploring revenue-generating opportunities to enhance profitability relative to the assets employed.


Peer comparison

Dec 31, 2023

Company name
Symbol
ROA
Reliance Steel & Aluminum Co
RS
12.75%
Olympic Steel Inc
ZEUS
4.52%