Name: Steel Dynamics Inc. (NASDAQ:STLD) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Steel Dynamics Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Unrelated parties	18,376,743)	9,587,691)	10,451,132)	11,801,609)	9,364,213)
Related parties	32,107)	13,791)	13,859)	20,230)	174,584)
Net sales	18,408,850)	9,601,482)	10,464,991)	11,821,839)	9,538,797)
Costs of goods sold	(13,046,426)	(8,166,754)	(8,934,007)	(9,499,025)	(7,956,783)
Gross profit	5,362,424)	1,434,728)	1,530,984)	2,322,814)	1,582,014)
Selling, general and administrative expenses	(643,976)	(477,450)	(436,498)	(416,640)	(394,631)
Profit sharing	(388,111)	(61,728)	(78,029)	(155,985)	(91,309)
Amortization of intangible assets	(29,232)	(28,999)	(29,577)	(27,780)	(29,193)
Asset impairment charges	—)	(19,409)	—)	—)	—)
Operating income	4,301,105)	847,142)	986,880)	1,722,409)	1,066,881)
Interest expense, net of capitalized interest	(57,209)	(94,877)	(127,104)	(126,620)	(134,399)
Other income (expense), net	(34,826)	(46,787)	15,561)	23,985)	2,753)
Income before income taxes	4,209,070)	705,478)	875,337)	1,619,774)	935,235)
Income tax expense	(962,256)	(134,650)	(197,437)	(363,969)	(129,439)
Net income	3,246,814)	570,828)	677,900)	1,255,805)	805,796)
Net (income) loss attributable to noncontrolling interests	(32,748)	(20,006)	(6,797)	2,574)	6,945)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)

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).

The financial performance from 2017 to 2021 is characterized by moderate volatility in the early period followed by an exceptional surge in both top-line revenue and bottom-line profitability in the final year. While the company experienced a contraction in sales and earnings between 2018 and 2020, the results for 2021 indicate a significant expansion in scale and operational efficiency.

Revenue and Gross Profitability: Net sales exhibited a fluctuating trend, peaking in 2018 at 11.8 billion USD before declining to 9.6 billion USD by 2020. However, 2021 saw a dramatic increase to 18.4 billion USD, representing a nearly 92% increase over the previous year. Gross profit mirrored this trajectory, rising from 1.4 billion USD in 2020 to 5.3 billion USD in 2021. This suggests not only an increase in volume but a substantial expansion in gross margins, which shifted from approximately 14.6% in 2020 to 29.1% in 2021.
Operating Expenses and Efficiency: Selling, general, and administrative expenses increased steadily from 394 million USD in 2017 to 643 million USD in 2021. Notably, the growth in these expenses remained linear and modest compared to the exponential growth in revenue during 2021, indicating strong operating leverage. Profit sharing expenses showed significant volatility, peaking in 2021 at 388 million USD, likely correlating with the record-high operating performance of that year.
Operating Income and Net Earnings: Operating income experienced a sharp recovery in 2021, reaching 4.3 billion USD compared to 847 million USD in 2020. Net income attributable to the company followed this trend, climbing from 550 million USD in 2020 to 3.2 billion USD in 2021. This growth was achieved despite a corresponding increase in income tax expenses, which rose to 962 million USD in 2021 to reflect the higher taxable income.
Financial Costs and Other Income: A consistent downward trend is observed in net interest expenses, which decreased from 134 million USD in 2017 to 57 million USD in 2021. This steady reduction in interest obligations suggests a strengthening balance sheet, likely through debt repayment or a reduction in the cost of borrowing. Other income and expenses remained relatively immaterial relative to the scale of operating income, though they shifted into a net expense position by 2020 and 2021.

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