Steel Dynamics Inc (STLD)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	2,802,590	4,045,880	6,117,830	5,362,420	1,434,730
Revenue	US$ in thousands	17,540,400	18,795,300	22,260,800	18,408,800	9,601,480
Gross profit margin		15.98%	21.53%	27.48%	29.13%	14.94%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,802,590K ÷ $17,540,400K
= 15.98%

The gross profit margin of Steel Dynamics Inc has displayed varying trends over the past five years. In December 2020, the gross profit margin was recorded at 14.94%, indicating that for every dollar of revenue, the company retained approximately 14.94 cents after accounting for the cost of goods sold. There was a significant increase in the gross profit margin to 29.13% by December 2021, showcasing improved efficiency in managing production costs or potentially higher pricing power.

Subsequently, by December 2022, the gross profit margin remained strong at 27.48%, suggesting that the company was able to continue generating healthy profits relative to its revenue. However, there was a moderate decline in the margin to 21.53% by December 2023, possibly indicating increased competition or rising costs impacting profitability.

By December 2024, the gross profit margin further decreased to 15.98%, reflecting potential challenges in maintaining profitability amidst changing market conditions. Overall, the fluctuating gross profit margins highlight the importance of closely monitoring cost management strategies and revenue generation efforts to sustain profitability in the dynamic economic environment Steel Dynamics Inc operates within.