Steel Dynamics Inc (STLD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,935,200 | 14,908,400 | 14,160,000 | 12,531,200 | 9,265,560 |
| Total stockholders’ equity | US$ in thousands | 8,934,290 | 8,866,670 | 8,130,360 | 6,304,640 | 4,345,160 |
| Financial leverage ratio | 1.67 | 1.68 | 1.74 | 1.99 | 2.13 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,935,200K ÷ $8,934,290K
= 1.67
The financial leverage ratio of Steel Dynamics Inc has shown a decreasing trend over the past five years, indicating a reduction in the company's reliance on debt to finance its operations. The ratio has gradually declined from 2.13 in December 2020 to 1.67 in December 2024. This signifies an improvement in the company's financial stability and indicates a lower level of financial risk associated with debt obligations. The decreasing trend suggests that Steel Dynamics Inc is moving towards a more conservative financial structure, which could enhance its ability to weather economic downturns and unexpected challenges in the future.
Peer comparison
Dec 31, 2024