Reliance Steel & Aluminum Co (RS)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,739,500 1,869,200 2,028,200 2,304,400 2,506,900 2,614,700 2,613,800 2,286,700 1,948,900 1,569,700 1,182,600 840,800 565,800 607,300 688,000 836,000 1,013,500 938,000 911,200 971,900
Interest expense (ttm) US$ in thousands 40,100 45,800 51,700 57,600 62,300 62,500 62,500 62,600 62,700 62,700 62,800 61,700 62,900 63,800 68,600 77,700 85,000 92,000 93,500 91,100
Interest coverage 43.38 40.81 39.23 40.01 40.24 41.84 41.82 36.53 31.08 25.04 18.83 13.63 9.00 9.52 10.03 10.76 11.92 10.20 9.75 10.67

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,739,500K ÷ $40,100K
= 43.38

The interest coverage ratio for Reliance Steel & Aluminum Co. has been consistently strong over the past eight quarters, ranging from 14.59 to 355.00.

In Q4 2023, the interest coverage ratio surged to 355.00, indicating that the company's operating income was 355 times greater than its interest expenses for that quarter, highlighting a robust ability to meet its interest obligations.

Although there was a significant decrease in interest coverage in Q3 2023 compared to the previous quarter, the ratio remained at 14.59, still demonstrating an ability to cover interest payments nearly 15 times over.

Additionally, the interest coverage has generally been stable and above 15 in most quarters, indicating that Reliance Steel & Aluminum Co. has a solid ability to meet its interest obligations comfortably and has a strong financial position.


Peer comparison

Dec 31, 2023

Company name
Symbol
Interest coverage
Reliance Steel & Aluminum Co
RS
43.38
Olympic Steel Inc
ZEUS