Steel Dynamics Inc (STLD)

Current ratio

		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
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
Current ratio		2.91	3.77	4.20	4.15	3.76	3.67	3.52	3.42	3.10	2.91	2.84	2.95	3.38	3.28	3.60	4.02	4.22	4.00	4.35	4.02

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,787,830K ÷ $2,332,300K
= 2.91

The current ratio for Steel Dynamics Inc. has exhibited fluctuations over the past eight quarters, ranging from a low of 2.91 in Q4 2023 to a high of 4.20 in Q2 2023. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, suggesting that the company has more current assets relative to its current liabilities.

In the most recent quarter, Q4 2023, the current ratio stands at 2.91, indicating a decline compared to the previous quarter. While the current ratio is above 1, indicating that Steel Dynamics Inc. has more current assets than current liabilities, the downward trend in the current ratio may raise concerns about the company's ability to cover its short-term obligations.

On the positive side, the current ratio has generally been above 3 over the past eight quarters, suggesting that Steel Dynamics Inc. has maintained a healthy liquidity position. It is essential for investors and stakeholders to monitor the trend in the current ratio over time to assess the company's financial health and ability to meet its short-term obligations.