Steel Dynamics Inc (STLD)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	14,689,740	15,085,630	15,637,870	16,192,640	16,142,950	15,853,030	15,153,410	14,089,490	13,046,430	11,656,600	10,206,960	8,751,210	8,166,750	8,041,550	8,170,540	8,710,020	8,934,010	9,282,880	9,653,340	9,742,430
Inventory	US$ in thousands	2,894,630	2,941,630	3,044,010	2,988,850	3,129,960	3,376,530	3,647,060	3,516,820	3,531,130	2,894,970	2,481,830	2,217,530	1,843,550	1,609,220	1,567,020	1,644,540	1,689,040	1,767,020	1,802,760	1,867,700
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,689,740K ÷ $2,894,630K
= 5.07

Steel Dynamics Inc.'s inventory turnover has shown a generally stable trend over the past eight quarters, ranging from a low of 4.01 in Q1 2022 to a high of 5.42 in Q1 2023. The company's inventory turnover improved gradually throughout 2022 and peaked in Q1 2023 before slightly declining in subsequent quarters.

A consistently high inventory turnover ratio indicates that Steel Dynamics Inc. efficiently manages its inventory levels by quickly selling and replacing inventory. This could suggest effective inventory control measures and strong demand for the company's products.

Overall, the inventory turnover ratios for Steel Dynamics Inc. imply that the company has been effective in managing its inventory to meet customer demand and optimize its working capital.