Steel Dynamics Inc (STLD)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	14,935,200	15,659,800	15,061,300	15,026,800	14,982,800	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
Total stockholders’ equity	US$ in thousands	8,934,290	9,081,500	9,130,770	9,072,410	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
Financial leverage ratio		1.67	1.72	1.65	1.66	1.69	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

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 declining trend from 2.03 as of March 31, 2020, to 1.67 as of June 30, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests that the company is less vulnerable to financial distress and has a stronger equity position relative to its debt. It also implies that the company may have better financial stability and flexibility to weather economic downturns or other challenges. Overall, the decreasing trend in the financial leverage ratio of Steel Dynamics Inc reflects a prudent approach to managing its capital structure.