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

Company name
Symbol
ROE
Reliance Steel & Aluminum Co
RS
17.30%
Olympic Steel Inc
ZEUS
8.02%