Steel Dynamics Inc (STLD)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,450,880 | 3,862,670 | 3,214,070 | 550,822 | 671,103 |
| Total assets | US$ in thousands | 14,908,400 | 14,160,000 | 12,531,200 | 9,265,560 | 8,275,760 |
| ROA | 16.44% | 27.28% | 25.65% | 5.94% | 8.11% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,450,880K ÷ $14,908,400K
= 16.44%
Steel Dynamics Inc. has shown varying levels of return on assets (ROA) over the past five years, ranging from as low as 5.94% in 2020 to as high as 27.28% in 2022. The ROA for the most recent year, 2023, stands at 16.44%. This indicates that, on average, the company generated a return of 16.44 cents for every dollar of assets it holds.
The significant increase in ROA from 2020 to 2022 suggests improved efficiency in asset utilization and/or increased profitability. However, the decrease in ROA in 2023 compared to 2022 could indicate a slight decline in the company's ability to generate profits from its assets.
Overall, Steel Dynamics Inc. maintains a healthy ROA, reflecting positive management of its assets to generate profits. Further analysis of the company's financial performance and operating efficiency would be beneficial to understand the factors contributing to the fluctuations in ROA over the years.
Peer comparison
Dec 31, 2023