Steel Dynamics Inc (STLD)

Return on assets (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
Net income (ttm)	US$ in thousands	1,537,134	1,754,111	2,013,504	2,397,613	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	2,311,404	1,420,784	793,989	550,822	484,404	535,309	654,115
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
ROA		10.29%	11.20%	13.37%	15.96%	16.36%	17.83%	20.61%	23.88%	27.28%	30.74%	32.05%	29.77%	25.65%	20.04%	13.29%	7.84%	5.94%	5.62%	6.32%	7.84%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,537,134K ÷ $14,935,200K
= 10.29%

The return on assets (ROA) of Steel Dynamics Inc has shown fluctuating trends over the past quarters, reflecting the company's ability to generate profits from its assets.

From March 2020 to June 2020, the ROA decreased from 7.84% to 6.32%, indicating a slight decline in efficiency in generating earnings from its assets. However, the ROA continued to decrease to 5.62% by September 2020, suggesting a further decrease in profitability relative to its asset base.

The trend reversed from December 2020 onwards, with the ROA increasing to 5.94% and then steadily rising to 32.05% by June 2022. This significant improvement in ROA signals a period of strong performance where the company was able to generate substantial profits compared to its asset base.

Subsequently, there was a gradual decline in ROA starting from September 2022 to December 2024, with the ROA decreasing to 10.29%. This downward trend may indicate challenges in maintaining profitability levels relative to its asset investments.

Overall, the fluctuations in the ROA of Steel Dynamics Inc reflect varying levels of efficiency in utilizing its assets to generate profits over the analyzed periods. It is important for stakeholders to monitor these changes to understand the company's operational performance and financial health.