Steel Dynamics Inc (STLD)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,943,037 | 2,224,071 | 2,562,184 | 3,066,801 | 3,151,186 | 3,391,698 | 3,877,988 | 4,432,308 | 5,091,818 | 5,761,900 | 5,864,100 | 5,201,775 | 4,301,104 | 3,130,724 | 1,964,540 | 1,167,655 | 847,142 | 770,353 | 842,542 | 968,724 |
| Total assets | US$ in thousands | 14,935,200 | 15,659,800 | 15,061,300 | 15,026,800 | 14,982,800 | 14,929,000 | 14,551,400 | 14,219,800 | 14,160,000 | 14,047,700 | 13,711,200 | 13,056,600 | 12,531,200 | 11,536,000 | 10,687,300 | 10,127,900 | 9,265,560 | 8,617,560 | 8,468,340 | 8,344,920 |
| Operating ROA | 13.01% | 14.20% | 17.01% | 20.41% | 21.03% | 22.72% | 26.65% | 31.17% | 35.96% | 41.02% | 42.77% | 39.84% | 34.32% | 27.14% | 18.38% | 11.53% | 9.14% | 8.94% | 9.95% | 11.61% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,943,037K ÷ $14,935,200K
= 13.01%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's profitability by evaluating its operating income in relation to its total assets. Examining the data provided for Steel Dynamics Inc, we can observe a fluctuating trend in the company's Operating ROA over the displayed periods.
From March 31, 2020, to December 31, 2020, Steel Dynamics Inc's Operating ROA exhibited a relatively stable performance, hovering between 8.94% and 11.61%. However, from March 31, 2021, to June 30, 2022, there was a significant upward trend in Operating ROA, indicating an improvement in the company's operational efficiency and profitability. The ratio surged from 11.53% in March 31, 2021, to a peak of 42.77% in June 30, 2022, signifying a period of robust performance for the company.
Subsequently, from September 30, 2022, to December 31, 2024, Steel Dynamics Inc experienced a gradual decline in its Operating ROA figures. The ratio decreased from 41.02% in September 30, 2022, to 13.01% by December 31, 2024. This downturn suggests potential challenges or inefficiencies in the company's operations or utilization of its assets, leading to a decrease in profitability relative to its asset base.
Overall, the fluctuating pattern in Operating ROA for Steel Dynamics Inc points to varying levels of operational efficiency and profitability over the analyzed periods. It would be imperative for stakeholders and management to further investigate the factors behind these changes to sustain or improve the company's financial performance in the future.
Peer comparison
Dec 31, 2024