Steel Dynamics Inc (STLD)

Quick 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
Cash	US$ in thousands	1,400,890	1,765,470	1,475,360	1,604,940	1,628,420	1,420,500	1,007,080	1,189,530	1,243,870	1,095,700	1,113,740	1,245,160	1,368,620	1,267,620	1,496,460	1,235,480	1,381,460	1,146,010	972,561	791,444
Short-term investments	US$ in thousands	721,210	500,844	611,701	714,769	628,215	583,211	351,005	351	—	—	—	—	0	—	69,546	219,193	262,174	69,529	114,154	173,723
Receivables	US$ in thousands	1,608,300	1,882,000	2,143,000	2,127,000	2,056,100	2,300,000	2,700,000	2,400,000	1,916,400	1,892,800	1,571,000	1,366,500	971,900	918,842	844,056	998,408	844,336	986,946	1,072,880	1,143,400
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
Quick ratio		1.60	2.16	2.40	2.44	2.12	2.02	1.84	1.72	1.42	1.45	1.45	1.57	1.86	1.86	2.16	2.38	2.47	2.19	2.33	2.10

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 measures a company's ability to meet its short-term liabilities with its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term obligations.

Looking at the trend of Steel Dynamics Inc.'s quick ratio over the past eight quarters, we observe fluctuations in the ratio. The quick ratio ranged from a low of 1.67 in Q4 2023 to a high of 2.51 in Q1 2023.

In general, the quick ratio has been relatively healthy, consistently above 1, indicating that Steel Dynamics Inc. has sufficient liquid assets to cover its current liabilities in most quarters. The increasing trend from Q4 2022 to Q1 2023, where the ratio peaked at 2.51, suggests improving liquidity and a stronger ability to meet short-term obligations.

However, the drop in the quick ratio in Q4 2023 to 1.67 may raise some concerns about the company's liquidity position in that particular period. It would be important to investigate the factors contributing to this decline and whether it is a temporary fluctuation or a more sustained issue.

Overall, while Steel Dynamics Inc. has maintained a generally favorable quick ratio above 1, investors and stakeholders should monitor any significant deviations from the trend to assess the company's liquidity risk and financial health effectively.