Steel Dynamics Inc (STLD)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 8,866,670 | 8,893,540 | 8,707,980 | 8,336,640 | 8,130,360 | 7,971,160 | 7,588,350 | 6,964,350 | 6,304,640 | 5,607,930 | 5,020,110 | 4,728,790 | 4,345,160 | 4,201,180 | 4,145,250 | 4,113,530 | 4,075,830 | 4,056,640 | 4,064,490 | 4,008,110 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,450,882K ÷ $8,866,670K
= 27.64%
Steel Dynamics Inc.'s return on equity (ROE) has shown a declining trend over the past eight quarters, starting at 55.82% in Q1 2022 and dropping to 27.64% in Q4 2023. This decrease suggests a potential deterioration in the company's ability to generate profits from its shareholder equity.
The ROE peaked at 57.91% in Q2 2022 and has been on a downward trajectory since then. This could indicate challenges in efficiently utilizing equity financing to generate profits for shareholders. The steady decline in ROE may raise concerns among investors about the company's overall financial performance and efficiency in utilizing its equity base.
It is essential for Steel Dynamics Inc. to analyze the factors contributing to the decreasing ROE and take appropriate measures to improve its profitability and efficiency in using shareholder funds. Investors and stakeholders will closely monitor future financial statements to assess whether the declining trend in ROE continues or if there are signs of improvement.
Peer comparison
Dec 31, 2023