Current Ratio
since 2005
Calculation
Steel Dynamics Inc., current ratio, long-term trends, 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 liquidity position of the entity exhibits significant growth and a generally robust ability to cover short-term obligations from 2005 to 2021. Current assets demonstrated a consistent long-term upward trajectory, increasing from 725.7 million US$ in 2005 to 6.9 billion US$ by the end of 2021.
- Current Ratio Trends
- An initial contraction in liquidity is observed between 2005 and 2008, during which the current ratio declined from 3.50 to a period low of 1.76. A subsequent recovery phase occurred, with the ratio returning to 3.56 by 2010 before entering a period of fluctuation between 2.23 and 3.77 from 2011 to 2013.
- Liquidity Peak and Stabilization
- A phase of exceptionally high liquidity is evident between 2014 and 2019. The current ratio peaked at 4.74 in 2015 and remained consistently above 3.90 through 2019, indicating a conservative working capital strategy and a substantial cushion of liquid assets relative to short-term obligations.
- Recent Asset and Liability Dynamics
- Between 2020 and 2021, the current ratio experienced a moderate decline from 3.38 to 3.10. While current assets grew significantly in 2021 to 6.9 billion US$, this growth was accompanied by a proportional increase in current liabilities, which rose to 2.2 billion US$, resulting in a slight compression of the ratio.
Overall, the entity has maintained a current ratio well above the threshold of 1.0 throughout the entire analyzed period. The progression from early volatility to a period of high liquidity, followed by a recent moderate normalization, suggests a strong and sustainable short-term financial position.
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Comparison to Competitors
Steel Dynamics Inc., current ratio, long-term trends, 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., current ratio, long-term trends, 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).