Steel Dynamics Inc (STLD)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,943,040 | 3,151,180 | 5,091,820 | 4,301,100 | 847,142 |
| Total assets | US$ in thousands | 14,935,200 | 14,908,400 | 14,160,000 | 12,531,200 | 9,265,560 |
| Operating ROA | 13.01% | 21.14% | 35.96% | 34.32% | 9.14% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,943,040K ÷ $14,935,200K
= 13.01%
Steel Dynamics Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the years. The ratio increased significantly from 2020 to 2021, reaching 34.32%, indicating that the company's operating income generated from its assets improved substantially. In 2022, the operating ROA continued to rise to 35.96%, demonstrating an even stronger performance in utilizing its assets efficiently to generate operating profits.
However, in 2023, there was a notable decrease in the operating ROA to 21.14%, suggesting a potential decrease in operating income generated in relation to the company's assets. This could be attributed to various factors affecting the company's operations during that period. Furthermore, the operating ROA decreased further to 13.01% in 2024, indicating a continued decline in the efficiency of using assets to generate operating profits.
Overall, while Steel Dynamics Inc experienced a significant improvement in operating ROA from 2020 to 2022, the subsequent decline in 2023 and 2024 highlights the importance of consistently monitoring and evaluating the company's operational efficiency in generating profits from its assets.
Peer comparison
Dec 31, 2024