Reliance Steel & Aluminum Co (RS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.39 | 1.36 | 1.46 | 1.57 | 1.58 |
Reliance Steel & Aluminum Co's solvency ratios indicate a strong financial position with consistently low debt levels in relation to its assets, capital, and equity over the years.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remained at 0.00 from December 31, 2020, to December 31, 2024, indicating that the company effectively operates with minimal debt relative to its total assets, capital employed, and shareholder equity.
Moreover, the Financial leverage ratio decreased from 1.58 in 2020 to 1.39 in 2024, demonstrating a decreasing trend in reliance on debt financing relative to the company's equity capital. This reduction in the Financial leverage ratio further supports the company's ability to manage its debt levels efficiently while maintaining a healthy balance sheet.
Overall, based on these solvency ratios, Reliance Steel & Aluminum Co appears to have a solid financial position with a low level of debt and a strong capacity to meet its financial obligations, which bodes well for its long-term financial stability and growth prospects.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 29.22 | 44.41 | 40.37 | 31.38 | 11.15 |
Reliance Steel & Aluminum Co's interest coverage has shown a favorable trend over the past five years, indicating the company's ability to meet its interest obligations. In December 31, 2020, the interest coverage was 11.15, which improved significantly to 31.38 in December 31, 2021, and continued to increase to 40.37 in December 31, 2022. The interest coverage further strengthened to 44.41 in December 31, 2023, demonstrating a robust ability to cover interest expenses. However, there was a slight decline in interest coverage to 29.22 in December 31, 2024. Overall, the consistent improvement in interest coverage ratios indicates that Reliance Steel & Aluminum Co has been effectively managing its interest obligations and generating sufficient earnings to cover its interest expenses.