Reliance Steel & Aluminum Co (RS)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 10,480,300 | 10,492,900 | 10,440,400 | 10,203,200 | 10,329,900 | 10,202,200 | 10,402,700 | 10,114,200 | 9,536,000 | 9,252,400 | 8,930,000 | 8,549,000 | 8,106,800 | 7,998,700 | 7,724,100 | 8,085,500 | 8,131,100 | 8,130,900 | 8,327,100 | 8,504,200 |
| Debt-to-assets ratio | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.20 | 0.20 | 0.18 | 0.22 | 0.19 | 0.19 | 0.23 | 0.25 |
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 been consistently stable at 0.11 for the past four quarters of 2023. This indicates that the company relies on debt to finance 11% of its assets, while the remaining 89% is funded by equity.
Comparing the current ratio to the previous year, we see a notable decrease from 0.16 in Q4 2022 to 0.11 in Q4 2023. This suggests that the company has reduced its reliance on debt financing in relation to its assets over the past year, which could indicate improved financial stability and reduced risk of default.
In conclusion, the sustained low debt-to-assets ratio of 0.11 throughout 2023 demonstrates Reliance Steel & Aluminum Co.'s prudent management of debt and a strong asset base, positioning the company well in terms of financial health and risk management.
Peer comparison
Dec 31, 2023