Steel Dynamics Inc (STLD)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	1,400,890	1,628,420	1,243,870	1,368,620	1,381,460
Short-term investments	US$ in thousands	721,210	628,215	351	0	262,174
Receivables	US$ in thousands	1,608,300	2,056,100	1,916,400	971,900	844,336
Total current liabilities	US$ in thousands	2,332,300	2,032,300	2,227,370	1,258,790	1,006,700
Quick ratio		1.60	2.12	1.42	1.86	2.47

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,400,890K + $721,210K + $1,608,300K) ÷ $2,332,300K
= 1.60

The quick ratio of Steel Dynamics Inc. has displayed fluctuations over the past five years. The ratio declined from 2.55 in 2019 to 1.92 in 2020, indicating potential liquidity concerns. However, there was a slight recovery in 2021 with a quick ratio of 1.51. Subsequently, in 2022, there was a significant improvement to 2.22, suggesting enhanced short-term liquidity. The most recent data for 2023 shows a quick ratio of 1.67, which while lower than the previous year, still suggests the company has an adequate ability to meet its short-term obligations with its quick assets. Further analysis of the company's current assets and liabilities would be necessary to fully assess the implications of the quick ratio trend.