Steel Dynamics Inc (STLD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Steel Dynamics Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 across multiple periods, suggesting that the company has no significant debt obligations compared to its total assets, capital, and equity.
The Financial leverage ratio, which measures the company's use of debt in its capital structure, has shown a declining trend from 2.03 in March 2020 to 1.67 in June 2024. This decreasing trend indicates that the company is reducing its reliance on debt funding over time, enhancing its financial stability and lowering its risk of financial distress.
Overall, based on these solvency ratios, Steel Dynamics Inc appears to have a conservative approach to managing its capital structure, maintaining a strong solvency position with minimal debt obligations in relation to its assets and equity.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 35.38 | 39.84 | 44.93 | 47.57 | 42.58 | 41.16 | 43.05 | 46.30 | 55.85 | 71.87 | 86.57 | 91.09 | 74.57 | 47.99 | 27.48 | 13.61 | 8.83 | 6.93 | 6.89 | 7.91 |
The interest coverage ratio for Steel Dynamics Inc has shown a consistently improving trend over the period from March 2020 to December 2024. The ratio increased from 7.91 in March 2020 to a peak of 91.09 in March 2022, indicating the company's ability to meet its interest obligations from its operating income.
The ratio then experienced a slight decline but remains relatively high, with a value of 35.38 as of December 31, 2024. This suggests that Steel Dynamics Inc has a significant margin of safety in meeting its interest payments, as the company's operating income is more than sufficient to cover its interest expenses.
Overall, the improving trend and consistently high values of the interest coverage ratio indicate that Steel Dynamics Inc is in a strong financial position with respect to its ability to service its debt obligations through its operating profits.