Steel Dynamics Inc (STLD)

Days of inventory on hand (DOH)

		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
Inventory turnover		4.74	4.87	4.79	4.84	5.10	5.13	5.14	5.42	5.16	4.70	4.15	4.01	3.69	4.03	4.11	3.95	4.43	5.01	5.23	5.31
DOH	days	77.04	74.92	76.15	75.47	71.59	71.17	71.05	67.37	70.77	77.74	87.85	91.11	98.79	90.65	88.75	92.49	82.39	72.86	69.83	68.76

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.74
= 77.04

Steel Dynamics Inc's days of inventory on hand (DOH) has shown some fluctuations over the years according to the data provided.

From March 31, 2020, to December 31, 2021, the DOH increased steadily from 68.76 days to 98.79 days, indicating a lengthening of the time it takes for the company to sell its inventory. This could signify potential issues such as slowing sales, excessive inventory levels, or inefficiencies in inventory management during this period.

However, from March 31, 2022, to June 30, 2024, the DOH fluctuated within a narrower range between 67.37 days and 77.04 days. While these fluctuations suggest some variability in inventory management, the overall trend appears to stabilize compared to the earlier period.

It is essential for Steel Dynamics Inc to monitor its DOH closely to ensure that inventory levels are optimized, avoiding both stockouts and excess inventory. Maintaining appropriate inventory levels can help the company manage cash flow efficiently and improve its overall financial performance.