Reliance Steel & Aluminum Co (RS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,722,300 | 7,087,400 | 6,086,500 | 5,115,400 | 5,206,600 |
| ROE | 17.30% | 25.96% | 23.22% | 7.22% | 13.47% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,335,900K ÷ $7,722,300K
= 17.30%
Reliance Steel & Aluminum Co.'s return on equity (ROE) has shown fluctuating trends over the past five years. In 2023, the ROE decreased to 17.30% compared to 25.96% in 2022 and 23.22% in 2021. This decline could indicate a potential decrease in the company's profitability relative to its equity. However, the ROE in 2023 remains significantly higher than the levels observed in 2020 (7.22%) and 2019 (13.47%), suggesting an overall improvement in the company's performance in recent years. To gain further insights, it would be beneficial to analyze the factors contributing to this fluctuation in ROE and assess the company's efficiency in generating returns for its shareholders.
Peer comparison
Dec 31, 2023