Reliance Steel financial leverage is the degree to which the firm utilises its fixed-income securities. Companies with high leverage are usually considered to be at financial risk. Reliance Steel Aluminum financial risk is the risk to Reliance Steel stockholders that is caused by an increase in debt. In other words with a high degree of financial leverage come high interest payments which usually reduces Earnings Per Share (EPS). Additionally take a look at analysis of Reliance Steel Fundamentals Over Time.
The company reports 2.05 B of total liabilities with total debt to equity ratio (D/E) of 42.8 which implies that the company may not be able to produce enough cash to satisfy its debt commitments. Reliance Steel Aluminum Co has Current Ratio of 3.85 indicating that it is in good position to pay out its debt commitments in time.
Reliance Steel Accumulated Other Comprehensive Income Over Time