Reliance Steel & Aluminum Co (RS)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 7,722,300 | 7,087,400 | 6,086,500 | 5,115,400 | 5,206,600 |
| Debt-to-equity ratio | 0.15 | 0.16 | 0.27 | 0.32 | 0.29 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,141,900K ÷ $7,722,300K
= 0.15
The debt-to-equity ratio of Reliance Steel & Aluminum Co. has shown a decreasing trend over the past five years, indicating a progressively lower reliance on debt financing relative to equity. In 2023, the company's debt-to-equity ratio improved to 0.15 from 0.23 in 2022. This suggests a stronger financial position as the company is utilizing less debt to finance its operations compared to the previous year.
Furthermore, compared to 2021 and 2020 when the debt-to-equity ratio was 0.27 and 0.32 respectively, the company has significantly reduced its debt levels relative to equity. This trend indicates that the company may be actively managing its debt levels to decrease financial risk and improve its overall financial health.
Although the debt-to-equity ratio slightly decreased from 0.31 in 2019 to 0.15 in 2023, it is important to note that there may be fluctuations in the ratio from year to year based on various factors such as economic conditions, business strategy, and industry trends. Overall, the decreasing trend in Reliance Steel & Aluminum Co.'s debt-to-equity ratio reflects a positive shift towards a more conservative capital structure and potentially lower financial leverage.
Peer comparison
Dec 31, 2023