Reliance Steel & Aluminum Co (RS)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 875,200 | 1,042,600 | 1,138,400 | 1,255,700 | 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 | 1,121,300 | 823,200 | 574,300 | 369,100 | 405,100 | 470,200 | 573,100 |
| Total stockholders’ equity | US$ in thousands | 7,219,600 | 7,350,500 | 7,623,000 | 7,932,400 | 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 |
| ROE | 12.12% | 14.18% | 14.93% | 15.83% | 17.30% | 18.30% | 19.86% | 23.14% | 25.96% | 27.91% | 27.91% | 25.56% | 23.22% | 19.13% | 14.62% | 10.75% | 7.22% | 8.04% | 9.49% | 11.71% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $875,200K ÷ $7,219,600K
= 12.12%
The return on equity (ROE) of Reliance Steel & Aluminum Co has shown fluctuations over the given period. It started at 11.71% in March 2020, declining to 7.22% by December 2020. However, there was a notable improvement seen in 2021, with ROE increasing to 23.22% by December.
In the subsequent periods, ROE continued to rise steadily, reaching its peak at 27.91% in June and September 2022. From that point onwards, the ROE started to gradually decrease but remained above 15% until the end of 2024.
Overall, the trend of ROE for Reliance Steel & Aluminum Co shows a significant improvement from 2020 to 2022, indicating better efficiency in generating profits relative to shareholders' equity. However, the subsequent decline observed in 2023 and 2024 suggests a need for the company to focus on maintaining and potentially improving its profitability levels.