Steel Dynamics Inc (STLD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.91 | 3.76 | 3.10 | 3.38 | 4.22 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,787,830K ÷ $2,332,300K
= 2.91
The current ratio of Steel Dynamics Inc. has exhibited fluctuations over the past five years. As of December 31, 2023, the current ratio stood at 2.91, a decrease from the previous year's 3.76. This indicates that the company may have experienced a decline in its ability to cover its short-term obligations with its current assets.
Comparing the current ratio of 2.91 in 2023 with historical data, it is lower than the figures of 3.10 in 2021, 3.38 in 2020, and 4.22 in 2019. This downward trend suggests a potential weakening liquidity position over the years, signaling that the company may be facing challenges in meeting its short-term liabilities with its current assets.
It is crucial for investors and stakeholders to monitor this trend closely, as a decreasing current ratio may indicate inefficiencies in managing working capital or potential liquidity risks. Further analysis into the reasons behind this decline in the current ratio is recommended to assess the financial health and operational efficiency of Steel Dynamics Inc.
Peer comparison
Dec 31, 2023