Steel Dynamics Inc (STLD)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.73	5.10	5.16	3.69	4.43
DOH	days	77.12	71.63	70.77	98.79	82.39

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.73
= 77.12

The days of inventory on hand (DOH) for Steel Dynamics Inc have shown some variability over the past five years. As of December 31, 2020, the company held inventory for an average of approximately 82.39 days. This figure increased to about 98.79 days by December 31, 2021, indicating a potential slowdown in inventory turnover.

However, the subsequent years saw improvements in the management of inventory. By December 31, 2022, the DOH had decreased to approximately 70.77 days, reflecting a more efficient use of inventory. The trend continued in the following years, with DOH remaining relatively stable at 71.63 days by December 31, 2023, and increasing slightly to 77.12 days as of December 31, 2024.

Overall, Steel Dynamics Inc appears to have made adjustments to reduce excess inventory levels and enhance inventory turnover efficiency in the latter part of the period under review. This could indicate better inventory management practices and potentially lead to improved cash flows and profitability in the upcoming periods.