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