Reliance Steel & Aluminum Co (RS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,219,600 | 7,722,300 | 7,087,400 | 6,086,500 | 5,115,400 |
| ROE | 12.12% | 17.30% | 25.96% | 23.22% | 7.22% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $875,200K ÷ $7,219,600K
= 12.12%
Reliance Steel & Aluminum Co's return on equity (ROE) has shown fluctuations over the years. In 2020, the ROE was at 7.22%, indicating a relatively lower profitability compared to the subsequent years. However, there was a significant improvement in 2021, with the ROE increasing to 23.22%, demonstrating a strong performance in utilizing shareholders' equity to generate profits.
The trend continued positively in 2022, with ROE reaching 25.96%, reflecting improved efficiency in generating earnings from shareholders' investments. However, there was a slight decrease in ROE in 2023, dropping to 17.30%, which could indicate a temporary setback in profitability or a change in the company's capital structure.
In 2024, the ROE further declined to 12.12%, suggesting a potential decrease in the company's ability to generate profits from the shareholders' equity. It is essential for investors and stakeholders to closely monitor these fluctuations in ROE to assess the company's financial performance and management efficiency in utilizing shareholder funds effectively.