Reliance Steel & Aluminum Co (RS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,159,000 | 1,341,300 | 1,467,600 | 1,636,500 | 1,762,800 | 1,899,800 | 2,041,700 | 2,299,300 | 2,492,700 | 2,610,000 | 2,618,600 | 2,300,200 | 1,962,100 | 1,544,000 | 1,170,900 | 835,300 | 701,400 | 762,700 | 826,500 | 970,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 16.05% | 18.25% | 19.25% | 20.63% | 22.83% | 24.60% | 26.81% | 31.30% | 35.17% | 38.12% | 38.20% | 35.22% | 32.24% | 26.34% | 20.79% | 15.63% | 13.71% | 15.13% | 16.68% | 19.83% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,159,000K ÷ ($—K + $7,219,600K)
= 16.05%
Reliance Steel & Aluminum Co's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio, which represents the company's ability to generate earnings from its total capital employed, started at 19.83% on March 31, 2020, and reached its peak at 38.20% on June 30, 2022.
Following this peak, the return on total capital gradually declined to 16.05% by December 31, 2024. Despite some fluctuations, the ratio generally demonstrated a positive trend, reflecting the company's ability to efficiently utilize its total capital to generate returns for its shareholders.
It's essential for investors and stakeholders to monitor this metric over time to assess the company's profitability and efficiency in utilizing its capital resources effectively.