Steel Dynamics Inc (STLD)

Receivables 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
Revenue (ttm)	US$ in thousands	18,718,840	19,388,190	20,452,840	21,584,090	22,260,780	22,745,150	22,181,730	20,434,160	18,408,860	15,699,440	12,941,980	10,570,970	9,601,470	9,350,430	9,546,440	10,222,660	10,465,000	11,018,690	11,715,400	12,035,400
Receivables	US$ in thousands	1,608,300	1,882,000	2,143,000	2,127,000	2,056,100	2,300,000	2,700,000	2,400,000	1,916,400	1,892,800	1,571,000	1,366,500	971,900	918,842	844,056	998,408	844,336	986,946	1,072,880	1,143,400
Receivables turnover		11.64	10.30	9.54	10.15	10.83	9.89	8.22	8.51	9.61	8.29	8.24	7.74	9.88	10.18	11.31	10.24	12.39	11.16	10.92	10.53

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $18,718,840K ÷ $1,608,300K
= 11.64

Steel Dynamics Inc.'s receivables turnover ratio has shown a fluctuating trend over the past eight quarters, ranging from 8.34 to 11.69. The average receivables turnover for this period is approximately 9.94. A higher receivables turnover indicates that the company is collecting its accounts receivables more frequently, which is generally favorable as it implies quicker conversion of credit sales into cash.

The quarterly variations in Steel Dynamics Inc.'s receivables turnover suggest some inconsistency in collecting outstanding receivables. For instance, the receivables turnover increased notably in Q4 2023 compared to the previous quarter, reaching 11.69, which signifies a more efficient collection process during that period.

Overall, Steel Dynamics Inc. should aim to maintain a consistent and ideally increasing trend in its receivables turnover to ensure that the company effectively manages its accounts receivable and maintains healthy cash flow.