Reliance Steel & Aluminum Co (RS)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $7,219,600K)
= 0.00
The debt-to-capital ratio of Reliance Steel & Aluminum Co has consistently been 0.00 from March 31, 2020, to December 31, 2024. A debt-to-capital ratio of 0.00 indicates that the company has no debt in its capital structure during the specified periods. This implies that the company is financing its operations and investments primarily through equity, rather than relying on debt.
A debt-to-capital ratio of 0.00 is generally considered favorable, as it indicates a low level of financial risk due to the absence of debt obligations. It suggests that the company has a strong financial position and may have higher financial flexibility to pursue growth opportunities or withstand economic downturns.
However, it is important to note that a debt-to-capital ratio of 0.00 may also indicate that the company is underleveraged, potentially missing out on opportunities to benefit from tax advantages associated with debt, or failing to optimize its capital structure for optimal cost of capital.
Overall, the consistently low debt-to-capital ratio of Reliance Steel & Aluminum Co reflects a conservative financial strategy with a focus on maintaining a strong balance sheet and financial stability throughout the analyzed period.