Reliance Steel & Aluminum Co (RS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,141,900 | 1,139,400 | 1,642,000 | 1,638,900 | 1,523,600 |
| Total assets | US$ in thousands | 10,480,300 | 10,329,900 | 9,536,000 | 8,106,800 | 8,131,100 |
| Debt-to-assets ratio | 0.11 | 0.11 | 0.17 | 0.20 | 0.19 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,141,900K ÷ $10,480,300K
= 0.11
The debt-to-assets ratio of Reliance Steel & Aluminum Co. has shown a declining trend over the past five years, indicating a decreasing dependency on debt to finance its assets. As of December 31, 2023, the ratio stands at 0.11, the lowest among the five years presented. This suggests that the company relies less on debt financing and has a higher proportion of assets financed through equity or internal funds.
The decreasing trend in the debt-to-assets ratio could be a positive sign of improved financial health and reduced financial risk for Reliance Steel & Aluminum Co. It may also indicate strong operational performance and efficient asset management, allowing the company to finance a larger portion of its assets from internally generated funds.
Overall, the declining trend in the debt-to-assets ratio for Reliance Steel & Aluminum Co. reflects a prudent financial management strategy that aims to maintain a healthy balance between debt and equity financing, thereby enhancing the company's financial stability and flexibility.
Peer comparison
Dec 31, 2023