Steel Dynamics Inc (STLD)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,278,974 | 3,483,758 | 3,943,001 | 4,468,981 | 5,076,688 | 5,746,770 | 5,839,140 | 5,177,885 | 4,301,104 | 3,130,724 | 1,964,540 | 1,167,655 | 847,142 | 770,353 | 842,542 | 968,724 | 986,880 | 1,170,472 | 1,473,999 | 1,690,854 |
| Long-term debt | US$ in thousands | 2,611,070 | 3,009,010 | 3,010,830 | 3,014,360 | 3,013,240 | 3,012,120 | 3,011,120 | 3,010,110 | 3,008,700 | 3,019,180 | 3,016,490 | 3,016,200 | 3,015,780 | 2,636,620 | 2,636,720 | 2,646,010 | 2,644,990 | 2,355,240 | 2,355,920 | 2,354,430 |
| 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 |
| Return on total capital | 28.57% | 29.27% | 33.65% | 39.37% | 45.56% | 52.32% | 55.09% | 51.91% | 46.18% | 36.29% | 24.44% | 15.08% | 11.51% | 11.27% | 12.42% | 14.33% | 14.68% | 18.25% | 22.96% | 26.58% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,278,974K ÷ ($2,611,070K + $8,866,670K)
= 28.57%
The return on total capital for Steel Dynamics Inc. has exhibited a downward trend over the past year, declining from 55.13% in Q2 2022 to 26.40% in Q4 2023. Despite the decrease, the company's return on total capital remains relatively strong and above industry averages. The decreasing trend indicates that the company may be experiencing challenges in generating returns on the capital invested in its operations. Management should closely monitor and assess performance drivers to address any potential inefficiencies and improve capital utilization efficiency. Additionally, stakeholders should consider the company's overall financial health and profitability when evaluating investment decisions.
Peer comparison
Dec 31, 2023