Steel Dynamics Inc (STLD)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	17,540,400	18,795,300	22,260,800	18,408,800	9,601,480
Total current assets	US$ in thousands	5,431,340	6,787,830	7,638,020	6,901,020	4,258,450
Total current liabilities	US$ in thousands	2,150,580	2,332,300	2,032,300	2,227,370	1,258,790
Working capital turnover		5.35	4.22	3.97	3.94	3.20

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,540,400K ÷ ($5,431,340K – $2,150,580K)
= 5.35

Steel Dynamics Inc has shown a consistent improvement in its working capital turnover over the past five years. The working capital turnover ratio has increased steadily from 3.20 in December 31, 2020, to 5.35 in December 31, 2024. This indicates that the company has been able to generate $5.35 in net sales for every dollar of working capital invested as of December 31, 2024. The increasing trend in the working capital turnover ratio suggests that Steel Dynamics Inc has been managing its working capital efficiently, turning over its current assets more frequently to support its sales growth and operations. This improvement reflects the company's ability to optimize its working capital management, which is crucial for sustaining operational liquidity and efficient financial performance.