Steel Dynamics Inc (STLD)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	17,540,390	17,901,670	18,147,110	18,596,110	18,795,320	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	9,370,720	9,566,730	10,242,950
Total current assets	US$ in thousands	5,431,340	6,443,580	6,239,010	6,597,440	6,787,830	7,228,600	7,396,060	7,562,560	7,638,020	7,813,440	7,756,010	7,149,640	6,901,020	5,987,570	5,265,110	4,896,910	4,258,450	3,854,900	4,016,120	4,142,970
Total current liabilities	US$ in thousands	2,150,580	2,692,300	2,655,950	2,298,660	2,332,300	1,918,380	1,759,040	1,820,550	2,032,300	2,131,400	2,201,870	2,090,650	2,227,370	2,054,290	1,852,240	1,661,190	1,258,790	1,175,630	1,115,430	1,031,720
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,540,390K ÷ ($5,431,340K – $2,150,580K)
= 5.35

Steel Dynamics Inc has shown relatively stable working capital turnover over the past few years, with the ratio fluctuating between 3.20 and 5.35. The working capital turnover measures how efficiently the company is using its working capital to generate sales revenue.

From March 31, 2020, to March 31, 2024, we observe a general increasing trend in the working capital turnover ratio. This indicates that the company has been able to improve its efficiency in utilizing its working capital to generate sales.

Notable points include a significant increase in the ratio from June 30, 2023, to December 31, 2024, where the ratio jumped from 3.63 to 5.35. This suggests that the company has been able to effectively manage its working capital during this period.

Overall, a consistent and increasing working capital turnover ratio signifies that Steel Dynamics Inc has been successful in efficiently utilizing its working capital to support its sales growth, which is a positive indication of the company's operational efficiency. Monitoring this ratio going forward will be important to ensure continued healthy working capital management.