Reliance Steel & Aluminum Co (RS)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,159,000 | 1,341,300 | 1,467,600 | 1,636,500 | 1,762,800 | 1,899,800 | 2,041,700 | 2,299,300 | 2,492,700 | 2,610,000 | 2,618,600 | 2,300,200 | 1,962,100 | 1,544,000 | 1,170,900 | 835,300 | 701,400 | 762,700 | 826,500 | 970,100 |
| Interest expense (ttm) | US$ in thousands | 143,800 | 40,100 | 38,900 | 38,900 | 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 |
| Interest coverage | 8.06 | 33.45 | 37.73 | 42.07 | 43.96 | 41.48 | 39.49 | 39.92 | 40.01 | 41.76 | 41.90 | 36.74 | 31.29 | 24.63 | 18.64 | 13.54 | 11.15 | 11.95 | 12.05 | 12.49 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,159,000K ÷ $143,800K
= 8.06
The interest coverage ratio of Reliance Steel & Aluminum Co has shown a positive trend over the past few years, indicating the company's ability to meet its interest obligations comfortably. Starting at 12.49 in March 2020, the ratio improved consistently, reaching a peak of 43.96 in December 2023.
The company's interest coverage ratio remained relatively high and stable above 30 from March 2021 to September 2024, demonstrating robust financial health and a strong ability to cover interest expenses. However, there was a significant decline in the ratio to 8.06 in December 2024, which may raise concerns about the company's ability to meet its interest payments.
Overall, the general trend indicates that Reliance Steel & Aluminum Co has had a solid interest coverage position, but stakeholders should closely monitor the ratio to ensure it remains at sustainable levels in the future.