Steel Dynamics Inc (STLD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	8,866,670	8,130,360	6,304,640	4,345,160	4,075,830
Debt-to-capital ratio		0.23	0.27	0.32	0.41	0.39

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,611,070K ÷ ($2,611,070K + $8,866,670K)
= 0.23

The debt-to-capital ratio for Steel Dynamics Inc. has shown a decreasing trend over the past five years. In 2023, the ratio stood at 0.26, down from 0.27 in 2022, 0.33 in 2021, 0.42 in 2020, and 0.40 in 2019. This indicates that the company has been reducing its reliance on debt to finance its operations and investments relative to its total capital structure over the years. A lower debt-to-capital ratio suggests a lower financial risk and greater financial stability for the company, as it indicates a lower proportion of debt in its capital mix. This trend may imply that Steel Dynamics Inc. has been effectively managing its debt levels and strengthening its financial position.