Steel Dynamics Inc (STLD)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	18,718,800	22,260,800	18,408,800	9,601,480	10,465,000
Receivables	US$ in thousands	1,608,300	2,056,100	1,916,400	971,900	844,336
Receivables turnover		11.64	10.83	9.61	9.88	12.39

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $18,718,800K ÷ $1,608,300K
= 11.64

Steel Dynamics Inc.'s receivables turnover has shown a fluctuating trend over the past five years, ranging from a low of 9.61 in 2021 to a high of 12.39 in 2019. The average receivables turnover ratio over this period was approximately 10.48.

A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. In the case of Steel Dynamics Inc., the upward trend in the ratio from 2019 to 2023 suggests an improvement in their accounts receivable management efficiency.

It is important to continue monitoring the receivables turnover ratio to ensure that the company maintains its efficient collection of accounts receivable, as a declining ratio could indicate potential issues with credit policies, collection efforts, or the financial health of customers.