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

Company name
Symbol
Financial leverage ratio
Reliance Steel & Aluminum Co
RS
1.36
Olympic Steel Inc
ZEUS
1.77