Steel Dynamics Inc (STLD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,908,400 | 14,160,000 | 12,531,200 | 9,265,560 | 8,275,760 |
| Total stockholders’ equity | US$ in thousands | 8,866,670 | 8,130,360 | 6,304,640 | 4,345,160 | 4,075,830 |
| Financial leverage ratio | 1.68 | 1.74 | 1.99 | 2.13 | 2.03 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,908,400K ÷ $8,866,670K
= 1.68
The financial leverage ratio of Steel Dynamics Inc. has shown a decreasing trend over the past five years. The ratio has decreased from 2.03 in 2019 to 1.68 in 2023. This indicates a reduction in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company has a lower level of debt relative to its equity, which can signify improved financial stability and lower risk of default. However, it is also important to consider the industry norms and the company's overall financial strategy when interpreting changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023