Steel Dynamics Inc (STLD)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 16.83% | 17.49% | 18.96% | 20.54% | 22.87% | 25.33% | 26.44% | 25.46% | 23.36% | 19.94% | 15.18% | 11.05% | 8.82% | 8.24% | 8.83% | 9.48% | 9.43% | 10.62% | 12.58% | 14.05% |
| Pretax margin | 17.11% | 17.63% | 18.92% | 20.34% | 22.48% | 24.86% | 25.89% | 24.82% | 22.69% | 19.07% | 14.14% | 9.54% | 7.23% | 6.67% | 7.27% | 8.31% | 8.32% | 9.64% | 11.69% | 13.22% |
| Net profit margin | 13.09% | 13.73% | 14.66% | 15.73% | 17.35% | 18.99% | 19.81% | 19.02% | 17.46% | 14.78% | 11.05% | 7.60% | 5.83% | 5.21% | 5.63% | 6.42% | 6.43% | 7.44% | 9.11% | 10.26% |
Steel Dynamics Inc. has shown a consistent downward trend in its profitability ratios over the quarters provided. The gross profit margin has declined from 27.48% in Q4 2022 to 21.53% in Q4 2023, indicating a decrease in the percentage of revenue remaining after accounting for cost of goods sold.
Similarly, the operating profit margin has also decreased from 22.87% in Q4 2022 to 16.77% in Q4 2023, showing a decline in the efficiency of the company's core operations to generate profits. The pretax margin and net profit margin have followed the same trend, showing reductions from Q4 2022 to Q4 2023.
This declining trend in profitability margins suggests that Steel Dynamics Inc. may be facing challenges in maintaining profitability levels, possibly due to factors such as rising costs, competitive pressures, or operational inefficiencies. Monitoring and addressing these factors will be crucial for the company to improve its profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 16.44% | 17.83% | 20.61% | 23.88% | 27.28% | 30.74% | 32.05% | 29.77% | 25.65% | 20.12% | 13.38% | 7.93% | 6.04% | 5.65% | 6.35% | 7.87% | 8.14% | 10.32% | 13.58% | 15.72% |
| Return on total capital | 28.57% | 29.27% | 33.65% | 39.37% | 45.56% | 52.32% | 55.09% | 51.91% | 46.18% | 36.29% | 24.44% | 15.08% | 11.51% | 11.27% | 12.42% | 14.33% | 14.68% | 18.25% | 22.96% | 26.58% |
| Return on equity (ROE) | 27.64% | 29.93% | 34.44% | 40.74% | 47.51% | 54.17% | 57.91% | 55.82% | 50.98% | 41.38% | 28.48% | 16.98% | 12.89% | 11.58% | 12.97% | 15.96% | 16.52% | 20.20% | 26.25% | 30.81% |
Steel Dynamics Inc. has shown consistently strong profitability ratios over the quarters analyzed. The Operating Return on Assets (Operating ROA) has ranged from 21.14% to 42.77%, indicating the company's ability to generate profits from its assets before interest and taxes. This metric peaked in Q2 2022 at 42.77% before trending slightly lower.
The Return on Assets (ROA) has followed a similar trend, ranging from 16.44% to 32.05%. This ratio demonstrates the company's efficiency in utilizing its assets to generate profits. Steel Dynamics Inc. saw a peak in ROA in Q2 2022 at 32.05%.
The Return on Total Capital has also shown a consistent increase over the quarters, ranging from 26.40% to 55.13%. This ratio reflects how well the company is generating profits from both its debt and equity capital. Steel Dynamics Inc. registered its highest Return on Total Capital in Q2 2022 at 55.13%.
Lastly, the Return on Equity (ROE) has displayed an upward trajectory from 27.64% to 57.91%. This ratio indicates how well the company is utilizing shareholder equity to generate profits. The highest ROE was recorded in Q2 2022 at 57.91%.
Overall, Steel Dynamics Inc. has exhibited strong profitability ratios, suggesting efficient asset utilization, effective capital management, and robust returns to shareholders.