Reliance Steel & Aluminum Co (RS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,739,500 | 1,869,200 | 2,028,200 | 2,304,400 | 2,506,900 | 2,614,700 | 2,613,800 | 2,286,700 | 1,948,900 | 1,569,700 | 1,182,600 | 840,800 | 565,800 | 607,300 | 688,000 | 836,000 | 1,013,500 | 938,000 | 911,200 | 971,900 |
| Long-term debt | US$ in thousands | 1,141,900 | 1,141,600 | 1,140,900 | 1,140,200 | 1,139,400 | 1,138,800 | 1,138,000 | 1,642,800 | 1,642,000 | 1,641,400 | 1,640,600 | 1,639,700 | 1,638,900 | 1,638,300 | 1,426,900 | 1,772,300 | 1,523,600 | 1,578,200 | 1,944,900 | 2,122,200 |
| 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 |
| Return on total capital | 19.62% | 21.08% | 23.16% | 27.16% | 30.47% | 32.74% | 32.70% | 27.97% | 25.22% | 20.92% | 16.26% | 12.04% | 8.38% | 9.09% | 10.78% | 12.54% | 15.06% | 14.10% | 13.23% | 13.98% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,739,500K ÷ ($1,141,900K + $7,722,300K)
= 19.62%
Reliance Steel & Aluminum Co. has demonstrated a consistent trend of return on total capital over the past eight quarters, with the percentage ranging from 19.62% to 30.83%. The return on total capital peaked at 30.83% in Q3 2022 before slightly decreasing in subsequent quarters. Despite the fluctuations, the company has generally maintained a strong performance in utilizing its total capital efficiently to generate profits. The recent return on total capital of 19.62% in Q4 2023 indicates a slight decline compared to the previous quarter, which may merit further investigation to understand the underlying factors impacting the company's capital efficiency. Overall, Reliance Steel & Aluminum Co. appears to have a solid track record in optimizing its total capital to generate returns for its shareholders.
Peer comparison
Dec 31, 2023