Steel Dynamics Inc (STLD)

Financial leverage ratio

		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
Total assets	US$ in thousands	14,908,400	14,929,000	14,551,400	14,219,800	14,160,000	14,047,700	13,711,200	13,056,600	12,531,200	11,536,000	10,687,300	10,127,900	9,265,560	8,617,560	8,468,340	8,344,920	8,275,760	7,943,250	7,857,910	7,857,230
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
Financial leverage ratio		1.68	1.68	1.67	1.71	1.74	1.76	1.81	1.87	1.99	2.06	2.13	2.14	2.13	2.05	2.04	2.03	2.03	1.96	1.93	1.96

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 been fluctuating over the past eight quarters, ranging from 1.67 to 1.87. The ratio indicates that the company's level of financial leverage has been relatively stable, with a slight downward trend in recent quarters. A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing to support its operations and growth.

The decreasing trend in the financial leverage ratio could suggest that the company is reducing its reliance on debt to finance its operations, which may be seen as a positive sign by investors and creditors. However, it is essential to consider the specific reasons behind these changes, such as the company's strategic decisions regarding capital structure, debt management, or profitability.

Overall, further analysis of Steel Dynamics Inc.'s financial leverage ratio, in conjunction with other financial metrics and qualitative factors, can provide a more comprehensive assessment of the company's financial health and risk profile.