Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Steel Dynamics Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Customer, vendor and scrap generator relationships	526,886)	526,886)	501,212)	435,262)	394,062)
Trade names	147,950)	147,950)	147,950)	127,350)	130,550)
Other	1,350)	1,350)	1,350)	2,165)	2,165)
Intangible assets, gross	676,186)	676,186)	650,512)	564,777)	526,777)
Accumulated amortization	(380,841)	(351,609)	(322,611)	(294,449)	(269,868)
Intangible assets, net	295,345)	324,577)	327,901)	270,328)	256,909)
Goodwill	453,835)	457,226)	452,915)	429,645)	386,893)
Intangible assets and goodwill	749,180)	781,803)	780,816)	699,973)	643,802)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Steel Dynamics Inc. intangible assets, net decreased from 2019 to 2020 and from 2020 to 2021.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Steel Dynamics Inc. goodwill increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Steel Dynamics Inc. intangible assets and goodwill increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Steel Dynamics Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Less: Goodwill	453,835)	457,226)	452,915)	429,645)	386,893)
Total assets (adjusted)	12,077,399)	8,808,336)	7,822,850)	7,273,918)	6,468,839)
Adjustment to Total Steel Dynamics, Inc. Equity
Total Steel Dynamics, Inc. equity (as reported)	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Less: Goodwill	453,835)	457,226)	452,915)	429,645)	386,893)
Total Steel Dynamics, Inc. equity (adjusted)	5,850,806)	3,887,938)	3,622,919)	3,505,426)	2,964,681)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Steel Dynamics Inc., Financial Data: Reported vs. Adjusted

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Steel Dynamics Inc., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Total Asset Turnover
Reported total asset turnover	1.47	1.04	1.26	1.53	1.39
Adjusted total asset turnover	1.52	1.09	1.34	1.63	1.47
Financial Leverage
Reported financial leverage	1.99	2.13	2.03	1.96	2.05
Adjusted financial leverage	2.06	2.27	2.16	2.08	2.18
Return on Equity (ROE)
Reported ROE	50.98%	12.68%	16.47%	31.98%	24.25%
Adjusted ROE	54.93%	14.17%	18.52%	35.90%	27.41%
Return on Assets (ROA)
Reported ROA	25.65%	5.94%	8.11%	16.34%	11.85%
Adjusted ROA	26.61%	6.25%	8.58%	17.30%	12.56%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Steel Dynamics Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Steel Dynamics Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Steel Dynamics Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Steel Dynamics Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Steel Dynamics Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales	18,408,850)	9,601,482)	10,464,991)	11,821,839)	9,538,797)
Total assets	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Activity Ratio
Total asset turnover¹	1.47	1.04	1.26	1.53	1.39
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales	18,408,850)	9,601,482)	10,464,991)	11,821,839)	9,538,797)
Adjusted total assets	12,077,399)	8,808,336)	7,822,850)	7,273,918)	6,468,839)
Activity Ratio
Adjusted total asset turnover²	1.52	1.09	1.34	1.63	1.47

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 18,408,850 ÷ 12,531,234 = 1.47

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 18,408,850 ÷ 12,077,399 = 1.52

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Steel Dynamics Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Total Steel Dynamics, Inc. equity	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Solvency Ratio
Financial leverage¹	1.99	2.13	2.03	1.96	2.05
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	12,077,399)	8,808,336)	7,822,850)	7,273,918)	6,468,839)
Adjusted total Steel Dynamics, Inc. equity	5,850,806)	3,887,938)	3,622,919)	3,505,426)	2,964,681)
Solvency Ratio
Adjusted financial leverage²	2.06	2.27	2.16	2.08	2.18

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Total Steel Dynamics, Inc. equity
= 12,531,234 ÷ 6,304,641 = 1.99

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Steel Dynamics, Inc. equity
= 12,077,399 ÷ 5,850,806 = 2.06

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Steel Dynamics Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Total Steel Dynamics, Inc. equity	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Profitability Ratio
ROE¹	50.98%	12.68%	16.47%	31.98%	24.25%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Adjusted total Steel Dynamics, Inc. equity	5,850,806)	3,887,938)	3,622,919)	3,505,426)	2,964,681)
Profitability Ratio
Adjusted ROE²	54.93%	14.17%	18.52%	35.90%	27.41%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Total Steel Dynamics, Inc. equity
= 100 × 3,214,066 ÷ 6,304,641 = 50.98%

² Adjusted ROE = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Adjusted total Steel Dynamics, Inc. equity
= 100 × 3,214,066 ÷ 5,850,806 = 54.93%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Steel Dynamics Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Total assets	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Profitability Ratio
ROA¹	25.65%	5.94%	8.11%	16.34%	11.85%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Adjusted total assets	12,077,399)	8,808,336)	7,822,850)	7,273,918)	6,468,839)
Profitability Ratio
Adjusted ROA²	26.61%	6.25%	8.58%	17.30%	12.56%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Total assets
= 100 × 3,214,066 ÷ 12,531,234 = 25.65%

² Adjusted ROA = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Adjusted total assets
= 100 × 3,214,066 ÷ 12,077,399 = 26.61%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Steel Dynamics Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Steel Dynamics Inc. (NASDAQ:STLD)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Steel Dynamics Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Steel Dynamics Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)