Steel Dynamics Inc (STLD)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 77.12 | 71.63 | 70.77 | 98.79 | 82.39 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 77.12 | 71.63 | 70.77 | 98.79 | 82.39 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.12 + — – —
= 77.12
The cash conversion cycle of Steel Dynamics Inc has shown some fluctuations over the past five years. Starting at 82.39 days on December 31, 2020, it increased to 98.79 days on December 31, 2021, suggesting a lengthening of the time it takes to convert its investments in inventory and other resources into cash receipts from sales.
However, there was a notable improvement in the cash conversion cycle in the subsequent years. As of December 31, 2022, the cycle reduced to 70.77 days and further decreased to 71.63 days on December 31, 2023, indicating more efficient management of working capital and a faster cash conversion process.
By December 31, 2024, the cash conversion cycle slightly increased to 77.12 days but remained lower compared to the previous years, reflecting a relatively stable performance in converting assets into cash.
Overall, the trend in the cash conversion cycle of Steel Dynamics Inc shows some variability but generally indicates efforts to optimize operational efficiency and working capital management over the years.
Peer comparison
Dec 31, 2024