Steel Dynamics Inc (STLD)

Working capital 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
Total current assets	US$ in thousands	6,787,830	7,638,020	6,901,020	4,258,450	4,253,020
Total current liabilities	US$ in thousands	2,332,300	2,032,300	2,227,370	1,258,790	1,006,700
Working capital turnover		4.20	3.97	3.94	3.20	3.22

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,718,800K ÷ ($6,787,830K – $2,332,300K)
= 4.20

Steel Dynamics Inc.'s working capital turnover has shown a consistent upward trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio has increased from 3.22 in 2019 to 4.22 in 2023, highlighting the company's ability to generate sales revenue relative to its working capital invested.

A higher working capital turnover ratio signifies that the company is able to efficiently utilize its working capital to support its sales activities. This can be interpreted as a positive sign of operational efficiency as the company is able to generate more revenue with the same level of working capital.

Overall, Steel Dynamics Inc.'s increasing working capital turnover ratio demonstrates an improvement in the efficiency of its working capital management over the years, which is a favorable indication of the company's financial health and operational effectiveness.