Reliance Steel & Aluminum Co (RS)
Debt-to-equity 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-equity ratio | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | 0.17 | 0.25 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.33 | 0.29 | 0.36 | 0.29 | 0.31 | 0.39 | 0.44 |
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 been relatively stable over the past eight quarters, ranging between 0.15 and 0.25. A lower debt-to-equity ratio suggests that the company relies less on debt financing and has a stronger equity position. This indicates a lower financial risk as the company has a smaller proportion of debt in its capital structure compared to equity.
The consistent and low debt-to-equity ratio of around 0.15 to 0.16 in the most recent quarters indicates a healthy balance between debt and equity financing. It suggests that the company has a conservative approach to managing its capital structure and is not overly leveraged. Additionally, the slight decrease in the ratio from Q4 2022 to Q1 2023 may indicate that the company is gradually reducing its reliance on debt, which could further strengthen its financial position and resilience to economic fluctuations.
Overall, based on the trend in the debt-to-equity ratio, Reliance Steel & Aluminum Co. appears to have a sound financial structure with a manageable level of debt and a solid equity base to support its operations and growth initiatives.
Peer comparison
Dec 31, 2023