Steel Dynamics Inc (STLD)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	589,464	1,015,210	829,980	1,039,420	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
Short-term investments	US$ in thousands	147,811	645,343	418,367	653,255	721,210	500,844	611,701	714,769	628,215	583,211	351,005	351	—	—	—	—	0	0	69,546	219,193
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	2,150,580	2,692,300	2,655,950	2,298,660	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
Quick ratio		0.34	0.62	0.47	0.74	0.91	1.18	1.19	1.27	1.11	0.94	0.62	0.57	0.56	0.53	0.60	0.75	1.09	1.08	1.40	1.41

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($589,464K + $147,811K + $—K) ÷ $2,150,580K
= 0.34

The quick ratio of Steel Dynamics Inc has shown fluctuating trends over the past few years. Starting from a relatively healthy level of 1.41 in March 2020 and maintaining stability around 1.40 in June 2020 and September 2020, the ratio began to decline, reaching its lowest point of 0.53 in September 2021. During the next few quarters, it showed some improvement but remained below 1, indicating potential liquidity concerns.

The ratio increased to 1.27 in March 2023, suggesting a temporary recovery in the company's ability to cover its current liabilities with its most liquid assets. However, this improvement was short-lived as the ratio fell to 0.34 by December 2024, significantly below the ideal threshold of 1.

Overall, the fluctuating nature of the quick ratio for Steel Dynamics Inc indicates varying levels of liquidity risk and the need for the company to closely monitor and manage its current assets to ensure adequate coverage of short-term obligations.