Steel Dynamics Inc (STLD)

Payables 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
Payables	US$ in thousands	—	—	—	1,126,800	1,007,300	1,153,300	1,365,610	1,202,030	1,266,830	1,208,500	1,167,100	1,113,250	760,536	702,991	696,845	602,875	509,687	518,909	516,109	582,284
Payables turnover		—	—	—	14.37	16.03	13.75	11.10	11.72	10.30	9.65	8.75	7.86	10.74	11.44	11.73	14.45	17.53	17.89	18.70	16.73

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $14,689,740K ÷ $—K
= —

Steel Dynamics Inc.'s payables turnover has shown a fluctuating trend over the past eight quarters, ranging from a low of 10.97 in Q2 2022 to a high of 15.87 in Q4 2022. The average payables turnover ratio for the period is approximately 13.69.

A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could signify efficient management of payables and potentially improve supplier relationships. Conversely, a lower ratio may suggest delayed payments to suppliers, potentially straining relationships or causing missed early payment discounts.

The recent payables turnover ratios (Q4 2023 to Q1 2023) have been relatively stable, indicating consistent payment practices during this period. However, it is crucial to monitor trends over an extended period to assess the company's overall payment management efficiency and liquidity. Further analysis of industry benchmarks and comparison with competitors could provide additional insights into Steel Dynamics Inc.'s performance in managing its payables effectively.