Steel Dynamics Inc (STLD)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	3,151,180	5,091,820	4,301,100	847,142	986,880
Total assets	US$ in thousands	14,908,400	14,160,000	12,531,200	9,265,560	8,275,760
Operating ROA		21.14%	35.96%	34.32%	9.14%	11.92%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $3,151,180K ÷ $14,908,400K
= 21.14%

Steel Dynamics Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA stands at 21.14%, representing a decline from the previous year's strong performance of 35.96%. This decrease may indicate a potential decline in the company's ability to generate operating income from its assets.

Compared to 2021 and 2020, Steel Dynamics Inc. experienced a substantial improvement in operating ROA in 2022. The operating ROA was 34.32% in 2021 and 9.35% in 2020. This suggests that the company significantly enhanced its operating efficiency and profitability within that period.

While the operating ROA was relatively stable in 2019 at 11.92%, significant improvements were made in the following years. However, the recent decrease in 2023 raises questions about the company's operational performance and asset utilization efficiency.

Overall, Steel Dynamics Inc.'s operating ROA has shown both improvements and setbacks in recent years. It would be important to further investigate the factors contributing to the fluctuations in the operating ROA to assess the company's operational effectiveness and financial health.