Reliance Steel & Aluminum Co (RS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,722,300 | 7,724,300 | 7,615,600 | 7,345,700 | 7,087,400 | 6,846,700 | 6,854,300 | 6,531,300 | 6,086,500 | 5,860,700 | 5,631,700 | 5,342,800 | 5,115,400 | 5,039,800 | 4,953,900 | 4,892,200 | 5,206,600 | 5,073,400 | 4,941,000 | 4,829,800 |
| ROE | 17.30% | 18.30% | 19.86% | 23.14% | 25.96% | 27.91% | 27.91% | 25.56% | 23.22% | 19.15% | 14.63% | 10.77% | 7.23% | 8.05% | 9.51% | 11.73% | 13.49% | 12.28% | 12.32% | 13.59% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,335,900K ÷ $7,722,300K
= 17.30%
Over the past eight quarters, Reliance Steel & Aluminum Co. has exhibited a declining trend in its return on equity (ROE) ratio. The ROE has decreased from 25.96% in Q4 2022 to 17.30% in Q4 2023. During this period, the company's ROE has shown consistent variability, fluctuating between 17.30% and 27.91%.
While a high ROE indicates that the company is efficiently generating profits from its shareholders' equity, the declining trend in Reliance Steel & Aluminum Co.'s ROE could be a cause for concern. It suggests that the company may be facing challenges in effectively utilizing its equity to generate returns for its shareholders.
Further analysis would be necessary to identify the specific factors driving this trend, such as changes in profitability, asset management, or leverage. Monitoring the ROE over the coming quarters will be crucial to assess whether this trend is persistent or if there are potential improvements in the company's operational performance and financial health.
Peer comparison
Dec 31, 2023