Reliance Steel & Aluminum Co (RS)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 1.36 | 1.36 | 1.37 | 1.39 | 1.46 | 1.49 | 1.52 | 1.55 | 1.57 | 1.58 | 1.59 | 1.60 | 1.58 | 1.59 | 1.56 | 1.65 | 1.56 | 1.60 | 1.69 | 1.76 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,480,300K ÷ $7,722,300K
= 1.36
Reliance Steel & Aluminum Co.'s financial leverage ratio has been relatively stable over the past eight quarters, ranging from 1.36 to 1.55. The ratio indicates the company's level of debt relative to its equity, with higher values suggesting higher debt levels compared to equity.
The trend shows a slight decrease in the financial leverage ratio from Q4 2022 to Q1 2023, indicating a reduction in the company's reliance on debt to finance its operations over this period. However, the ratio then fluctuated slightly in the subsequent quarters, hovering around the 1.36 to 1.39 range.
Overall, Reliance Steel & Aluminum Co.'s financial leverage ratio suggests that the company has maintained a moderate level of debt in relation to its equity, which may indicate a balanced approach to capital structure. It is crucial for stakeholders to monitor this ratio to assess the company's financial risk and stability over time.
Peer comparison
Dec 31, 2023