Steel Dynamics Inc (STLD)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	14,737,800	14,749,400	16,142,900	13,046,400	8,166,750
Inventory	US$ in thousands	3,113,730	2,894,630	3,129,960	3,531,130	1,843,550
Inventory turnover		4.73	5.10	5.16	3.69	4.43

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $14,737,800K ÷ $3,113,730K
= 4.73

Steel Dynamics Inc's inventory turnover ratio has fluctuated over the past five years, ranging from 3.69 to 5.16. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.

In 2022, the inventory turnover ratio was 5.16, reflecting a high level of inventory turnover and suggesting that Steel Dynamics Inc was able to sell its inventory more quickly during that year. However, in 2021 and 2024, the inventory turnover ratios were slightly lower at 3.69 and 4.73 respectively, which may indicate a slower rate of inventory turnover during those years.

Overall, the average inventory turnover ratio for Steel Dynamics Inc over the five-year period was approximately 4.62, indicating a moderate level of inventory turnover efficiency. It is important for the company to continue monitoring its inventory turnover ratio to ensure it is maintaining optimal inventory levels and effectively managing its inventory turnover to support its overall financial performance.