Reliance Steel & Aluminum Co (RS)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.20 | 0.21 | 0.22 | 0.23 | 0.23 | 0.24 | 0.25 | 0.22 | 0.27 | 0.23 | 0.24 | 0.28 | 0.31 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,141,900K ÷ ($1,141,900K + $7,722,300K)
= 0.13
The debt-to-capital ratio for Reliance Steel & Aluminum Co. has remained relatively stable over the past eight quarters, ranging from 0.13 to 0.20. In general, a lower debt-to-capital ratio indicates a lower level of financial risk, as it suggests that the company relies less on debt financing and has a higher proportion of equity in its capital structure.
Reliance Steel & Aluminum Co.'s debt-to-capital ratio has shown a decreasing trend from Q4 2022 to Q1 2023, which can be interpreted positively as the company may be paying down debt or increasing its equity base during this period. However, the ratio increased slightly in Q2 2023 and has remained constant at 0.13 in Q3 and Q4 2023.
Overall, the company's debt-to-capital ratio suggests a relatively healthy financial position with a conservative level of debt usage compared to equity. Investors and creditors may view this stability positively as it indicates prudent financial management and a lower risk of financial distress.
Peer comparison
Dec 31, 2023