Steel Dynamics Inc (STLD)

Return on assets (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
Net income (ttm)	US$ in thousands	2,450,882	2,661,476	2,998,606	3,396,049	3,862,669	4,318,305	4,394,743	3,887,484	3,214,061	2,320,511	1,429,891	803,096	559,929	486,698	537,603	656,409	673,397	819,530	1,066,857	1,235,004
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
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,450,882K ÷ $14,908,400K
= 16.44%

Steel Dynamics Inc.'s return on assets (ROA) has been showing a declining trend over the past eight quarters. The company's ROA decreased from 29.77% in Q1 2022 to 16.44% in Q4 2023. This suggests that the company's ability to generate profits from its assets has weakened over time.

The declining trend in ROA could be attributed to various factors such as increasing costs, lower revenues, or inefficient asset utilization. It is essential for the management of Steel Dynamics Inc. to closely monitor the company's asset management strategies to improve ROA in the future.

Overall, the decreasing trend in ROA indicates that Steel Dynamics Inc. may be facing challenges in effectively managing its assets to generate sufficient profits. Further analysis of the company's financial performance and operational efficiency is recommended to identify the underlying causes of the declining ROA and implement corrective actions.