Steel Dynamics Inc (STLD)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,993,736 | 2,253,730 | 2,601,648 | 3,137,605 | 3,256,926 | 3,520,695 | 3,981,501 | 4,508,501 | 5,112,605 | 5,751,490 | 5,832,940 | 5,156,556 | 4,266,284 | 3,123,253 | 1,960,293 | 1,145,344 | 837,491 | 741,717 | 821,997 | 980,531 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,934,290 | 9,081,500 | 9,130,770 | 9,072,410 | 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 |
| Return on total capital | 22.32% | 24.82% | 28.49% | 34.58% | 36.73% | 39.59% | 45.72% | 54.08% | 62.88% | 72.15% | 76.87% | 74.04% | 67.67% | 55.69% | 39.05% | 24.22% | 19.27% | 17.65% | 19.83% | 23.84% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,993,736K ÷ ($—K + $8,934,290K)
= 22.32%
The return on total capital for Steel Dynamics Inc has shown fluctuations over the period ranging from March 31, 2020, to December 31, 2024. The trend indicates that the company's ability to generate returns on its total capital has varied significantly.
Initially, the return on total capital was at 23.84% as of March 31, 2020, which decreased to 19.83% by June 30, 2020. Thereafter, it decreased further to 17.65% as of September 30, 2020. However, by the end of December 31, 2020, there was a slight recovery with the return increasing to 19.27%.
Subsequently, there was a notable improvement in the return on total capital, with significant increases in the following quarters. This positive trend continued with substantial growth, reaching a peak of 76.87% as of June 30, 2022. The return on total capital then experienced a gradual decline, dropping to 22.32% by December 31, 2024.
Overall, the return on total capital for Steel Dynamics Inc has shown a fluctuating pattern over the period under review, reflecting the company's changing efficiency in generating returns on its total capital employed. It is essential for stakeholders to closely monitor these fluctuations to understand the company's financial performance and profitability trends over time.
Peer comparison
Dec 31, 2024