Reliance Steel & Aluminum Co (RS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.39 | 1.40 | 1.37 | 1.35 | 1.37 | 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 |
Reliance Steel & Aluminum Co has shown consistently low levels of solvency ratios, indicating strong financial health in terms of debt management. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been recorded at 0.00 throughout the observed periods, indicating that the company has no significant debt relative to its total assets, capital, and equity.
The Financial leverage ratio, which measures the extent to which a company is utilizing debt to finance its operations, has been gradually decreasing over the years. This decrease suggests that the company is becoming less reliant on debt financing, which generally indicates a lower level of financial risk.
Overall, the solvency ratios of Reliance Steel & Aluminum Co demonstrate a conservative capital structure with minimal debt levels, highlighting the company's ability to meet its long-term financial obligations and maintain financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Reliance Steel & Aluminum Co has shown a generally positive trend over the period analyzed. The ratio increased from 12.49 as of March 31, 2020, to a peak of 43.96 as of December 31, 2023, before showing a slight decline to 8.06 as of December 31, 2024.
During most of the period, the company demonstrated strong ability to cover its interest expenses with operating profits, with ratios consistently above 10, indicating a healthy ability to meet interest payments. The significant improvement in interest coverage from 2020 to 2023 suggests that the company's earnings were increasing at a faster pace than its interest expenses during this period.
However, the notable decrease in the interest coverage ratio in the last quarter of 2024 raises some concerns regarding the company's ability to comfortably cover its interest obligations with its operating profits. This decrease may warrant further investigation into the factors driving this decline and whether it is a short-term fluctuation or a more sustained issue.
In conclusion, while the overall trend in the interest coverage ratio of Reliance Steel & Aluminum Co has been positive, the recent decline in the ratio as of December 31, 2024, highlights the importance of monitoring the company's financial performance closely to ensure continued financial stability.