Steel Dynamics Inc (STLD)
Activity ratios
Short-term
Turnover ratios
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 5.35 | 4.77 | 5.06 | 4.33 | 4.22 | 3.65 | 3.63 | 3.76 | 3.97 | 4.00 | 3.99 | 4.04 | 3.94 | 3.99 | 3.79 | 3.27 | 3.20 | 3.50 | 3.30 | 3.29 |
Steel Dynamics Inc's inventory turnover has generally been consistent over the past few years, ranging from 3.69 to 5.42 times. This indicates that the company efficiently manages its inventory levels, with a higher turnover generally being preferable as it signifies faster sales of inventory.
On the other hand, the receivables turnover and payables turnover ratios are not provided in the data, suggesting a lack of information on the efficiency of the company in collecting receivables and managing payables.
The working capital turnover ratio has shown some fluctuations, varying from 3.20 to 5.35 times. A higher ratio indicates effective utilization of working capital to generate sales. Steel Dynamics Inc's working capital turnover has generally been increasing, which could suggest improved efficiency in utilizing its working capital to drive sales growth.
Overall, while the inventory turnover and working capital turnover ratios provide some insights into the efficiency of Steel Dynamics Inc's operations, the absence of data on receivables turnover and payables turnover limits a comprehensive assessment of the company's overall activity ratios.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Steel Dynamics Inc's Days of Inventory on Hand (DOH) fluctuated throughout the periods provided, ranging from a low of 67.37 days on March 31, 2023, to a high of 98.79 days on December 31, 2021. Generally, a decrease in DOH over time indicates improved inventory management efficiency, as seen in the downward trend from December 2021 to December 2024.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are missing, making it challenging to evaluate the company's efficiency in collecting receivables and managing payables during the specified periods. However, typically, a lower DSO indicates faster collection of receivables, while a higher Number of Days of Payables can signal a longer time taken to pay suppliers.
Overall, Steel Dynamics Inc's management of inventory improved over the years, as evidenced by the downward trend in DOH. However, a complete analysis of the company's activity ratios would require additional data on DSO and payables turnover to assess the overall efficiency of the company's working capital management.
See also:
Steel Dynamics Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 3.07 | 3.54 | 3.93 | 4.06 | 4.42 | 4.54 | 4.23 | 3.87 | 3.37 | 2.86 | 2.44 | 2.34 | 2.43 | 2.67 | 3.08 |
| Total asset turnover | 1.17 | 1.14 | 1.20 | 1.24 | 1.25 | 1.30 | 1.41 | 1.52 | 1.57 | 1.62 | 1.62 | 1.57 | 1.47 | 1.36 | 1.21 | 1.04 | 1.04 | 1.09 | 1.13 | 1.23 |
Steel Dynamics Inc's fixed asset turnover ratio has shown a generally increasing trend over the past few years, demonstrating improved efficiency in generating sales from its fixed assets. The ratio increased from 3.08 in March 2020 to a peak of 4.54 in June 2022 before slightly declining to 3.54 in June 2023. Despite the slight decrease in the ratio in recent periods, it remains above 3, indicating that the company continues to effectively utilize its fixed assets to generate revenue.
In terms of total asset turnover, the ratio fluctuated over the years but generally trended downwards. It decreased from 1.23 in March 2020 to 1.13 in June 2020, reaching its lowest point of 1.04 in December 2020. Subsequently, there was a gradual increase to 1.62 by September 2022, before declining to 1.14 by September 2024. The decreasing trend in total asset turnover suggests that the company may be experiencing challenges in efficiently generating sales from its total assets over time.
Overall, while Steel Dynamics Inc has shown improvements in its fixed asset turnover, the trend in total asset turnover indicates a need for the company to focus on optimizing the utilization of its total assets to enhance overall efficiency and profitability.
See also:
Steel Dynamics Inc Long-term (Investment) Activity Ratios (Quarterly Data)