Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Steel Dynamics Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable, unrelated parties	1,266,833)	760,536)	509,687)	536,743)	473,765)
Accounts payable, related parties	13,722)	8,919)	3,657)	14,011)	15,683)
Accounts payable	1,280,555)	769,455)	513,344)	550,754)	489,448)
Income taxes payable	13,746)	2,386)	2,014)	7,468)	3,696)
Accrued payroll and benefits	539,812)	201,778)	208,287)	264,542)	195,909)
Accrued interest	17,533)	19,656)	18,292)	25,526)	25,533)
Accrued expenses	278,549)	178,618)	175,405)	146,613)	125,138)
Current maturities of long-term debt	97,174)	86,894)	89,356)	24,234)	28,795)
Current liabilities	2,227,369)	1,258,787)	1,006,698)	1,019,137)	868,519)
Long-term debt, excluding current maturities	3,008,702)	3,015,782)	2,644,988)	2,352,489)	2,353,145)
Deferred income taxes	854,905)	536,288)	484,169)	435,838)	305,949)
Other liabilities	120,087)	106,479)	75,055)	8,870)	21,811)
Noncurrent liabilities	3,983,694)	3,658,549)	3,204,212)	2,797,197)	2,680,905)
Total liabilities	6,211,063)	4,917,336)	4,210,910)	3,816,334)	3,549,424)
Redeemable noncontrolling interests	211,414)	158,614)	143,614)	111,240)	111,240)
Common stock voting, $.0025 par value	649)	648)	646)	645)	644)
Treasury stock, at cost	(2,674,267)	(1,623,747)	(1,525,113)	(1,184,243)	(665,297)
Additional paid-in capital	1,218,933)	1,207,392)	1,181,012)	1,160,048)	1,141,534)
Retained earnings	7,761,417)	4,758,969)	4,419,296)	3,958,320)	2,874,693)
Accumulated other comprehensive income (loss)	(2,091)	1,902)	(7)	301)	—)
Total Steel Dynamics, Inc. equity	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Noncontrolling interests	(195,884)	(155,552)	(154,593)	(159,082)	(156,506)
Total equity	6,108,757)	4,189,612)	3,921,241)	3,775,989)	3,195,068)
Total liabilities and equity	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)

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).

Liabilities Trends

Total liabilities demonstrated a consistent upward trajectory over the analyzed periods, increasing from approximately $3.55 billion in 2017 to over $6.21 billion by 2021. Current liabilities experienced significant growth, particularly noticeable in 2021, where they nearly doubled from the previous year, rising from approximately $1.26 billion in 2020 to about $2.23 billion in 2021.

Accounts payable (unrelated parties) followed a marked increasing pattern, more than doubling from around $474 million in 2017 to nearly $1.27 billion in 2021, indicating perhaps an increasing reliance on suppliers or extended payment terms. Accounts payable (related parties), while minor relative to unrelated party payables, fluctuated but remained low in absolute terms.

Accrued payroll and benefits dropped somewhat between 2018 and 2020 but surged substantially in 2021, more than doubling year-over-year, signaling increased employee-related obligations. Accrued interest displayed a slight decline over time, suggesting controlled or reduced interest-bearing obligations or better interest expense management.

Long-term debt excluding current maturities grew steadily from $2.35 billion in 2017 to nearly $3.01 billion in 2021. Current maturities of long-term debt remained relatively stable with minor increases, indicating manageable short-term debt repayments despite overall debt growth.

Deferred income taxes showed strong growth, nearly tripling from about $306 million in 2017 to $855 million in 2021, which could reflect increased taxable temporary differences or changes in tax planning strategies.

Other liabilities, after a steep decline in 2018, increased again through to 2021, reaching over $120 million, which may denote adjustments or accruals in miscellaneous liabilities.

Equity Trends

Total equity rose steadily from nearly $3.20 billion in 2017 to approximately $6.11 billion by 2021. This increase was mainly driven by retained earnings, which exhibited strong growth, nearly tripling from $2.87 billion in 2017 to an impressive $7.76 billion in 2021, indicating sustained profitability and earnings retention.

Additional paid-in capital increased only modestly over the period, suggesting limited new equity issuances or capital contributions. Common stock value remained essentially stable, reflecting minimal changes in outstanding shares.

Treasury stock costs increased significantly in magnitude (negative value), implying ongoing repurchases or considerable buyback activity that intensified notably by 2021, which may indicate efforts to consolidate ownership or return capital to shareholders.

Accumulated other comprehensive income/loss fluctuated at relatively low absolute values with minor gains and losses but turned negative in 2021, suggesting a slight unfavorable change in items such as foreign currency translation adjustments or unrealized gains/losses on investments.

Noncontrolling interests remained negative and slightly increased in magnitude, reflecting the effect of minority shareholders' stakes within consolidated subsidiaries.

Overall Financial Position

Total liabilities and equity expanded substantially over the five-year span, from about $6.86 billion in 2017 to over $12.53 billion in 2021, indicating significant growth in the company's scale and financial structure.

The company’s balance sheet shows an overall increase in both liabilities and equity, with liabilities growing by approximately 75% and equity nearly doubling. The disproportionate growth in retained earnings and treasury stock activity indicates a focus on capital management and profitability retention.

The notable surge in current liabilities, especially accounts payable and accrued payroll and benefits, in 2021 might require scrutiny to assess liquidity and operational efficiency. Similarly, the growth in deferred income taxes suggests evolving tax positions that could impact future cash flows.

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Steel Dynamics Inc. (NASDAQ:STLD)

Balance Sheet: Liabilities and Stockholders’ Equity