GURUFOCUS.COM » STOCK LIST » USA » NYSE » Reliance Steel & Aluminum Co (NYSE:RS) » Definitions » Operating Margin %
Switch to:

Reliance Steel & Aluminum Co Operating Margin %

: 16.82% (As of Jun. 2022)
View and export this data going back to 1994. Start your Free Trial

Operating Margin % is calculated as Operating Income divided by its Revenue. Reliance Steel & Aluminum Co's Operating Income for the three months ended in Jun. 2022 was $788 Mil. Reliance Steel & Aluminum Co's Revenue for the three months ended in Jun. 2022 was $4,681 Mil. Therefore, Reliance Steel & Aluminum Co's Operating Margin % for the quarter that ended in Jun. 2022 was 16.82%.

Good Sign:

Reliance Steel & Aluminum Co operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Reliance Steel & Aluminum Co's Operating Margin % or its related term are showing as below:

RS' s Operating Margin % Range Over the Past 10 Years
Min: 5.82   Med: 7.12   Max: 15.32
Current: 15.32


RS's Operating Margin % is ranked better than
82.25% of 569 companies
in the Steel industry
Industry Median: 6.95 vs RS: 15.32

Reliance Steel & Aluminum Co's 5-Year Average Operating Margin % Growth Rate was 12.60% per year.

Reliance Steel & Aluminum Co's Operating Income for the three months ended in Jun. 2022 was $788 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $2,604 Mil.


Reliance Steel & Aluminum Co Operating Margin % Historical Data

The historical data trend for Reliance Steel & Aluminum Co's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Reliance Steel & Aluminum Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.74 8.34 9.13 7.49 13.76

Reliance Steel & Aluminum Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.47 14.23 13.86 15.96 16.82

Competitive Comparison

For the Steel subindustry, Reliance Steel & Aluminum Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Reliance Steel & Aluminum Co Operating Margin % Distribution

For the Steel industry and Basic Materials sector, Reliance Steel & Aluminum Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Reliance Steel & Aluminum Co's Operating Margin % falls into.



Reliance Steel & Aluminum Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Reliance Steel & Aluminum Co's Operating Margin % for the fiscal year that ended in Dec. 2021 is calculated as

Operating Margin %=Operating Income (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=1939.2 / 14093.3
=13.76 %

Reliance Steel & Aluminum Co's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=787.5 / 4681.2
=16.82 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Reliance Steel & Aluminum Co  (NYSE:RS) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Reliance Steel & Aluminum Co Operating Margin % Related Terms

Thank you for viewing the detailed overview of Reliance Steel & Aluminum Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Reliance Steel & Aluminum Co Business Description

Reliance Steel & Aluminum Co logo
Traded in Other Exchanges
Address
350 South Grand Avenue, Suite 5100, Los Angeles, CA, USA, 90071
Reliance Steel & Aluminum is a metal service center in the United States, providing metal processing and inventory management services for carbon and stainless steel, aluminum, and alloys. The company provides over 100,000 product types to approximately more than 125,000 customers. Reliance predominantly supplies the nonresidential construction, automotive, aerospace, energy, transportation, and heavy equipment end markets. Its product offerings comprise alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products.
Executives
Dellaquila Frank J director EMERSON ELECTRIC CO. 8000 W. FLORISSANT AVENUE ST. LOUIS MO 63136
Stotlar Douglas director C/O LSC COMMUNICATIONS, INC. 191 N. WACKER DRIVE, SUITE 1400 CHICAGO IL 60606
Seeger David W director 227 WEST MONROE STREET, SUITE 2600 CHICAGO IL 60606
Baldwin Lisa director 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Mcevoy Robert Ambrose director 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Figueroa John G. director 350 SOUTH GRAND AVENUE SUITE 5100 LOS ANGELES CA 90071
Colonias Karen Winifred director 5956 W. LAS POSITAS BLVD. PLEASANTON CA 94588
Kaminski Mark V director C/O COMMONWEALTH INDUSTRIES INC 500 WEST JEFFERSON SUITE 1900 LOUISVILLE KY 40202
Sharkey Andrew G Iii director 350 S. GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Lewis Karla R director, officer: President 350 S GRAND AVE STE 5100 LOS ANGELES CA 90071
Sales William K Jr officer: Special Advisor RELIANCE STEEL & ALUMINUM CO 350 S. GRAND AVE., SUITE 5100 LOS ANGELES CA 90071
Mollins Sean Michael officer: SVP, Operations 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Smith William A Ii officer: SVP, General Counsel, Corp Sec 350 S. GRAND AVE. SUITE 5100 LOS ANGELES CA 90071
Hoffman James Donald director, officer: CEO 350 S. GRAND AVE., STE 5100 LOS ANGELES CA 90071
Koch Stephen Paul officer: Sr. VP, Operations 350 S. GRAND AVE., STE. 5100 LOS ANGELES CA 90071

Reliance Steel & Aluminum Co Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)