Steel Dynamics Inc (STLD)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	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	986,880	1,170,472	1,473,999	1,690,854
Total assets	US$ in thousands	14,908,400	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	8,275,760	7,943,250	7,857,910	7,857,230
Operating ROA		21.14%	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%	11.92%	14.74%	18.76%	21.52%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $3,151,186K ÷ $14,908,400K
= 21.14%

Steel Dynamics Inc.'s operating return on assets (ROA) has exhibited a decreasing trend over the past eight quarters, starting at 39.84% in Q1 2022 and declining to 21.14% in Q4 2023. This indicates a declining efficiency in generating operating income from its assets. The company experienced a substantial drop in operating ROA from Q1 2023 to Q2 2023, where the ratio went from 31.17% to 26.65%. Despite a slight increase in Q3 2023, the ratio continued to trend downwards in Q4 2023. This declining trend may suggest potential operational inefficiencies or challenges in optimizing the utilization of its assets to generate operating profits. Further analysis of the underlying factors affecting the company's operational performance would be necessary to determine the root causes behind this trend and to develop strategies for improvement.