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