Calculation
Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
---|---|---|---|---|---|
Dec 31, 2021 | 3.10 | = | 6,901,023) | ÷ | 2,227,369) |
Dec 31, 2020 | 3.38 | = | 4,258,447) | ÷ | 1,258,787) |
Dec 31, 2019 | 4.22 | = | 4,253,025) | ÷ | 1,006,698) |
Dec 31, 2018 | 3.96 | = | 4,032,657) | ÷ | 1,019,137) |
Dec 31, 2017 | 4.04 | = | 3,508,342) | ÷ | 868,519) |
Dec 31, 2016 | 4.11 | = | 2,929,675) | ÷ | 712,815) |
Dec 31, 2015 | 4.74 | = | 2,537,941) | ÷ | 535,290) |
Dec 31, 2014 | 3.50 | = | 2,973,765) | ÷ | 850,582) |
Dec 31, 2013 | 2.54 | = | 2,473,634) | ÷ | 975,178) |
Dec 31, 2012 | 3.77 | = | 2,296,225) | ÷ | 609,677) |
Dec 31, 2011 | 2.23 | = | 2,455,258) | ÷ | 1,100,417) |
Dec 31, 2010 | 3.56 | = | 2,000,003) | ÷ | 561,317) |
Dec 31, 2009 | 2.45 | = | 1,456,803) | ÷ | 595,561) |
Dec 31, 2008 | 1.76 | = | 1,709,915) | ÷ | 970,981) |
Dec 31, 2007 | 1.88 | = | 1,696,229) | ÷ | 904,526) |
Dec 31, 2006 | 2.59 | = | 1,036,197) | ÷ | 399,490) |
Dec 31, 2005 | 3.50 | = | 725,733) | ÷ | 207,177) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The analysis of the financial data over the observed period reveals several notable trends concerning liquidity and current financial health.
- Current Assets
- Current assets display a general upward trend between 2005 and 2021, increasing from approximately $726 million to nearly $6.9 billion in 2021. There are periods of rapid growth, such as between 2006 and 2007 and again from 2016 onwards, indicating a steady enhancement of short-term assets available to the company. Some fluctuations are evident, for example, a decrease in 2009 as compared to 2008, but the overall trajectory is markedly positive.
- Current Liabilities
- Current liabilities show more volatility with an initial increase from about $207 million in 2005 to a peak exceeding $1.1 billion in 2011, followed by fluctuations without a clear directional trend until 2015. After 2015, liabilities remain generally between $850 million and $1.26 billion, before rising significantly again to over $2.2 billion in 2021. This sharp increase in 2021 liabilities suggests heightened short-term obligations.
- Current Ratio
- The current ratio, reflecting liquidity, fluctuates but stays largely above 2.0, signifying that current assets typically exceed current liabilities by at least double. The lowest points appear around 2007 and 2008, with ratios below 2.0, which may reflect tighter liquidity during that period. After 2008, the ratio improves considerably, even reaching highs above 4.7 around 2015, pointing to strong short-term financial safety margins. However, from 2019 onwards, there is a gradual decline in the ratio, ending near 3.1 in 2021, which, while still healthy, represents less cushion relative to previous years.
In summary, the company's liquidity position has generally improved over the years as evidenced by rising current assets and strong current ratios. Despite occasional volatility in current liabilities, the firm's ability to cover short-term obligations has remained solid. The notable rise in current liabilities in 2021 together with a decrease in the current ratio may warrant attention to ensure continued liquidity management effectiveness going forward.
Comparison to Competitors
Steel Dynamics Inc. | Freeport-McMoRan Inc. | |
---|---|---|
Dec 31, 2021 | 3.10 | 2.52 |
Dec 31, 2020 | 3.38 | 2.72 |
Dec 31, 2019 | 4.22 | 2.47 |
Dec 31, 2018 | 3.96 | 3.22 |
Dec 31, 2017 | 4.04 | 2.14 |
Dec 31, 2016 | 4.11 | 2.45 |
Dec 31, 2015 | 4.74 | 1.73 |
Dec 31, 2014 | 3.50 | 1.75 |
Dec 31, 2013 | 2.54 | 2.09 |
Dec 31, 2012 | 3.77 | 3.08 |
Dec 31, 2011 | 2.23 | 3.42 |
Dec 31, 2010 | 3.56 | 2.62 |
Dec 31, 2009 | 2.45 | 2.48 |
Dec 31, 2008 | 1.76 | 1.66 |
Dec 31, 2007 | 1.88 | 1.53 |
Dec 31, 2006 | 2.59 | 2.21 |
Dec 31, 2005 | 3.50 | 1.48 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Materials)
Steel Dynamics Inc. | Materials | |
---|---|---|
Dec 31, 2021 | 3.10 | 1.19 |
Dec 31, 2020 | 3.38 | 1.14 |
Dec 31, 2019 | 4.22 | 1.15 |
Dec 31, 2018 | 3.96 | 1.57 |
Dec 31, 2017 | 4.04 | 1.50 |
Dec 31, 2016 | 4.11 | 1.77 |
Dec 31, 2015 | 4.74 | 1.53 |
Dec 31, 2014 | 3.50 | 1.40 |
Dec 31, 2013 | 2.54 | 1.61 |
Dec 31, 2012 | 3.77 | 2.11 |
Dec 31, 2011 | 2.23 | 1.95 |
Dec 31, 2010 | 3.56 | 1.82 |
Dec 31, 2009 | 2.45 | 1.84 |
Dec 31, 2008 | 1.76 | 1.17 |
Dec 31, 2007 | 1.88 | 1.20 |
Dec 31, 2006 | 2.59 | 1.39 |
Dec 31, 2005 | 3.50 | 1.23 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).