Steel Dynamics Inc (STLD)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,611,070	3,013,240	3,008,700	3,015,780	2,644,990
Total assets	US$ in thousands	14,908,400	14,160,000	12,531,200	9,265,560	8,275,760
Debt-to-assets ratio		0.18	0.21	0.24	0.33	0.32

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,611,070K ÷ $14,908,400K
= 0.18

The debt-to-assets ratio of Steel Dynamics Inc. has shown a decreasing trend over the past five years, declining from 0.33 in 2019 to 0.21 in 2023. This indicates that the company has been successful in reducing its reliance on debt financing in relation to its total assets. A lower debt-to-assets ratio suggests a lower level of financial risk as it signifies that a smaller portion of the company's assets is financed by debt. This trend may indicate improved financial stability and the ability of Steel Dynamics Inc. to manage its debt levels effectively. Additionally, a decreasing debt-to-assets ratio may be viewed positively by investors and creditors as it signals a healthier balance sheet structure and potentially enhances the company's creditworthiness. Overall, the declining trend in Steel Dynamics Inc.'s debt-to-assets ratio reflects positively on its financial management practices and suggests a stronger financial position over the years.