Steel Dynamics Inc (STLD)

Working capital 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
Total current assets	US$ in thousands	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	4,253,020	4,020,320	4,023,600	4,028,890
Total current liabilities	US$ in thousands	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	1,006,700	1,005,280	925,736	1,003,090
Working capital turnover		4.20	3.65	3.63	3.76	3.97	4.00	3.99	4.04	3.94	3.99	3.79	3.27	3.20	3.49	3.29	3.29	3.22	3.65	3.78	3.98

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $18,718,840K ÷ ($6,787,830K – $2,332,300K)
= 4.20

Steel Dynamics Inc. has shown a relatively stable working capital turnover ratio over the past eight quarters, ranging from 3.63 to 4.22. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio generally suggests that the company is efficiently managing its working capital and converting it into sales.

The latest quarter's working capital turnover ratio of 4.22 indicates that for every dollar of working capital invested, the company generated $4.22 of sales. This shows an improvement compared to the previous quarter but a slight decline from the ratio in the same quarter of the previous year.

Overall, Steel Dynamics Inc. seems to be effectively managing its working capital to drive sales growth, although it may be beneficial for the company to continue monitoring and optimizing its working capital turnover to ensure efficient utilization of resources.