Stock Analysis on Net
Stock Analysis on Net

Steel Dynamics Inc. (NASDAQ:STLD)

This company has been moved to the archive! The financial data has not been updated since October 26, 2022.

Common-Size Income Statement 
Quarterly Data

Steel Dynamics Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: 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 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Unrelated parties 96.23 96.00 97.14 99.88 99.87 99.74 99.80 99.80 99.85 99.94 99.86 99.86 99.86 99.85 99.90 99.85 99.92 99.78 99.75 98.36 98.19 98.18 97.95
Related parties 3.77 4.00 2.86 0.12 0.13 0.26 0.20 0.20 0.15 0.06 0.14 0.14 0.14 0.15 0.10 0.15 0.08 0.22 0.25 1.64 1.81 1.82 2.05
Net sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Costs of goods sold -74.09 -69.69 -68.00 -66.82 -68.54 -73.13 -77.42 -83.00 -87.44 -86.42 -83.88 -86.54 -85.76 -84.80 -84.61 -82.05 -78.72 -78.90 -82.20 -86.27 -83.77 -83.58 -80.06
Gross profit 25.91% 30.31% 32.00% 33.18% 31.46% 26.87% 22.58% 17.00% 12.56% 13.58% 16.12% 13.46% 14.24% 15.20% 15.39% 17.95% 21.28% 21.10% 17.80% 13.73% 16.23% 16.42% 19.94%
Selling, general and administrative expenses -2.35 -1.91 -2.73 -3.43 -3.10 -3.46 -4.23 -5.27 -5.07 -5.22 -4.38 -4.76 -4.24 -3.84 -3.94 -3.67 -3.18 -3.27 -4.09 -4.12 -3.97 -4.12 -4.35
Profit sharing -1.86 -2.25 -2.31 -2.70 -2.24 -1.84 -1.38 -0.75 -0.51 -0.43 -0.83 -0.58 -0.71 -0.83 -0.84 -1.44 -1.41 -1.37 -1.02 -0.92 -0.87 -0.89 -1.15
Amortization of intangible assets -0.12 -0.12 -0.13 -0.14 -0.14 -0.17 -0.21 -0.29 -0.30 -0.34 -0.28 -0.38 -0.27 -0.25 -0.25 -0.26 -0.20 -0.22 -0.27 -0.30 -0.30 -0.31 -0.31
Asset impairment charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.75 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
Operating income 21.58% 26.04% 26.84% 26.91% 25.98% 21.40% 16.76% 9.95% 6.69% 7.58% 10.63% 7.74% 9.02% 10.29% 10.36% 12.59% 16.49% 16.24% 12.42% 8.39% 11.09% 11.10% 14.13%
Interest expense, net of capitalized interest -0.45 -0.41 -0.30 -0.23 -0.25 -0.33 -0.49 -0.78 -0.81 -1.32 -1.09 -1.38 -1.24 -1.17 -1.10 -1.09 -0.98 -1.02 -1.22 -1.39 -1.40 -1.42 -1.43
Other income (expense), net 0.25 0.06 -0.37 -0.15 -0.13 -0.22 -0.28 -0.68 -0.15 -1.34 0.10 0.02 0.18 0.15 0.23 0.25 0.22 0.16 0.17 -0.09 -0.10 0.16 0.15
Income before income taxes 21.38% 25.70% 26.17% 26.53% 25.60% 20.85% 15.99% 8.49% 5.72% 4.92% 9.64% 6.39% 7.96% 9.27% 9.48% 11.75% 15.73% 15.38% 11.37% 6.91% 9.59% 9.84% 12.85%
Income tax expense -5.13 -6.14 -6.29 -5.90 -5.94 -4.90 -3.61 -0.92 -1.25 -1.16 -2.23 -1.12 -1.93 -2.17 -2.21 -2.46 -3.39 -3.65 -2.71 6.07 -3.41 -3.45 -4.46
Net income 16.25% 19.55% 19.88% 20.63% 19.66% 15.95% 12.38% 7.57% 4.47% 3.76% 7.41% 5.26% 6.04% 7.10% 7.27% 9.29% 12.34% 11.73% 8.66% 12.98% 6.18% 6.40% 8.39%
Net (income) loss attributable to noncontrolling interests -0.07 -0.08 -0.06 -0.10 -0.18 -0.22 -0.23 -0.35 -0.18 -0.16 -0.14 -0.10 -0.06 -0.09 -0.02 0.01 0.01 0.00 0.08 0.07 0.09 0.04 0.09
Net income attributable to Steel Dynamics, Inc. 16.18% 19.47% 19.82% 20.53% 19.47% 15.73% 12.15% 7.22% 4.30% 3.60% 7.28% 5.17% 5.98% 7.01% 7.25% 9.30% 12.36% 11.73% 8.74% 13.04% 6.27% 6.44% 8.48%

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Sales and Party Transactions
The proportion of sales to unrelated parties steadily remained above 96%, generally close to 99-100%, until the last three periods where a notable decline occurred, decreasing to approximately 96-97%. Conversely, related party sales were minimal throughout most of the periods, typically below 0.3%, but exhibited a marked increase in the final three quarters, reaching about 2.9% to 4%. This shift suggests a changing sales composition in the latest periods.
Cost of Goods Sold (COGS) and Gross Profit
Costs of goods sold as a percentage of net sales showed considerable fluctuation. Initially, the figure remained high, mostly around 80-86%, peaking towards the end of 2019. From early 2020 onwards, a decreasing trend is visible, especially remarkable during 2021 when it dropped to as low as 66.8%, before increasing slightly again. Correspondingly, gross profit margin improved notably since 2020, rising from lows near 12-16% up to over 33% in late 2021, demonstrating enhanced profitability associated with reduced COGS.
Operating Expenses and Related Charges
Selling, general, and administrative expenses were relatively stable, fluctuating mostly between 2% and 5%, with a slight downward trend observed in mid-2022. Profit sharing expenses had variability but generally increased over the entire time frame, reaching multiple highs near 2.7% before easing somewhat. Amortization expense steadily declined over time, remaining under 0.4%. A singular impairment charge was recorded in late 2020 at approximately -0.75%, which may have influenced operating results during that period.
Operating Income
Operating income as a percentage of net sales tracked closely with gross profit trends. Early periods reflected moderate margins between 7% and 16%, but significant improvement occurred from 2020 onward, surging to nearly 27%. This enhancement indicates stronger operational efficiency and cost management in recent quarters.
Interest and Other Income/Expense
Net interest expense steadily decreased over time, declining from about -1.4% to less than -0.5% in the latest quarters, reflecting lower financing costs or effective capital management. Other income (expense), net, mostly hovered near zero but showed more volatility with negative spikes in mid-2020 and some positive rebounds towards late 2022.
Income Before Taxes and Tax Expense
Income before income taxes mirrored operating income trends, dipping in early 2020 but progressively increasing thereafter, peaking above 26% in late 2021. Income tax expense fluctuated but generally increased as a percentage of net sales over time, ranging from approximately -1% to -6%, with peaks coinciding with higher pre-tax earnings, suggesting a proportional tax burden to profitability.
Net Income and Attributable Earnings
Net income demonstrated positive growth over the analyzed periods, with some variability. While early values were around 5-8%, a pronounced upward trend since 2020 led to margins exceeding 20% in late 2021. Net income attributable to the company followed a similar pattern, affirming a stronger bottom line contribution in recent quarters. Minor losses and fluctuations attributable to noncontrolling interests appeared sporadically, with small negative values primarily in the latest periods.
Overall Summary
The data reveals an overall improvement in profitability and operational efficiency, particularly from 2020 onward, driven by decreasing costs of goods sold relative to sales and controlled operating expenses. The decline in interest expenses further supports rising net income margins. However, the recent rise in related party sales and corresponding decrease in unrelated party sales could imply shifts in customer composition or business structure. The tax expense increased in absolute terms with profitability, maintaining a stable effective tax rate relative to income. These trends suggest a company that has strengthened financial performance but may require monitoring of sales composition changes going forward.