Steel Dynamics Inc (STLD)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	4,045,883	4,302,546	4,814,957	5,391,437	6,117,827	6,892,120	7,028,320	6,344,670	5,362,426	4,042,839	2,735,024	1,819,765	1,434,728	1,308,884	1,375,908	1,512,643	1,530,984	1,735,810	2,062,052	2,292,968
Revenue (ttm)	US$ in thousands	18,718,840	19,388,190	20,452,840	21,584,090	22,260,780	22,745,150	22,181,730	20,434,160	18,408,860	15,699,440	12,941,980	10,570,970	9,601,470	9,350,430	9,546,440	10,222,660	10,465,000	11,018,690	11,715,400	12,035,400
Gross profit margin		21.61%	22.19%	23.54%	24.98%	27.48%	30.30%	31.69%	31.05%	29.13%	25.75%	21.13%	17.21%	14.94%	14.00%	14.41%	14.80%	14.63%	15.75%	17.60%	19.05%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,045,883K ÷ $18,718,840K
= 21.61%

Steel Dynamics Inc.'s gross profit margin has exhibited a declining trend over the past eight quarters, decreasing from 27.48% in Q4 2022 to 21.53% in Q4 2023. This downward trajectory suggests potential challenges in maintaining profitability on sales, as the company is retaining a smaller portion of revenue after accounting for direct costs of goods sold. The peak gross profit margin of 31.69% in Q2 2022 has since been followed by continuous decreases. The downward trend could be a result of various factors such as increasing costs of production, pricing pressures, or changes in product mix. It is essential for Steel Dynamics Inc. to closely monitor and address the factors impacting their gross profit margin to ensure sustained financial performance and competitiveness in the industry.