Steel Dynamics Inc (STLD)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		5.07	5.13	5.14	5.42	5.16	4.70	4.15	4.01	3.69	4.03	4.11	3.95	4.43	5.00	5.21	5.30	5.29	5.25	5.35	5.22
DOH	days	71.92	71.17	71.05	67.37	70.77	77.74	87.85	91.11	98.79	90.65	88.75	92.49	82.39	73.04	70.00	68.92	69.01	69.48	68.16	69.97

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.07
= 71.92

The days of inventory on hand (DOH) for Steel Dynamics Inc. have shown a fluctuating trend over the past eight quarters. In Q1 2022, the DOH was at its highest at 91.11 days, indicating a relatively longer period that inventory is held before being sold. Subsequently, there was a gradual decreasing trend in DOH for the next three quarters. However, in Q4 2022, there was a slight uptick in DOH to 70.77 days.

During the first three quarters of 2023, the DOH remained relatively stable, ranging from 67.37 days to 71.63 days. This suggests that the company has maintained efficient inventory management practices during this period. Overall, the downward trend in DOH from Q1 2022 to Q1 2023 indicates potential improvements in inventory turnover and management efficiency within the company.