Debt to Equity
since 2005
Calculation
Steel Dynamics Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current maturities1 | ÷ | Total Steel Dynamics, Inc. equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.49 | = | 3,105,876) | ÷ | 6,304,641) |
| Dec 31, 2020 | 0.71 | = | 3,102,676) | ÷ | 4,345,164) |
| Dec 31, 2019 | 0.67 | = | 2,734,344) | ÷ | 4,075,834) |
| Dec 31, 2018 | 0.60 | = | 2,376,723) | ÷ | 3,935,071) |
| Dec 31, 2017 | 0.71 | = | 2,381,940) | ÷ | 3,351,574) |
| Dec 31, 2016 | 0.81 | = | 2,356,826) | ÷ | 2,927,020) |
| Dec 31, 2015 | 0.97 | = | 2,594,656) | ÷ | 2,679,727) |
| Dec 31, 2014 | 1.04 | = | 3,024,166) | ÷ | 2,913,015) |
| Dec 31, 2013 | 0.83 | = | 2,107,589) | ÷ | 2,547,323) |
| Dec 31, 2012 | 0.92 | = | 2,202,237) | ÷ | 2,405,465) |
| Dec 31, 2011 | 1.03 | = | 2,380,100) | ÷ | 2,315,941) |
| Dec 31, 2010 | 1.14 | = | 2,386,821) | ÷ | 2,092,870) |
| Dec 31, 2009 | 1.12 | = | 2,222,754) | ÷ | 1,988,268) |
| Dec 31, 2008 | 1.63 | = | 2,650,384) | ÷ | 1,623,886) |
| Dec 31, 2007 | 1.33 | = | 2,029,845) | ÷ | 1,529,196) |
| Dec 31, 2006 | 0.36 | = | 438,878) | ÷ | 1,231,108) |
| Dec 31, 2005 | 0.50 | = | 440,575) | ÷ | 879,868) |
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 leverage profile of the organization exhibits three distinct phases between 2005 and 2021: an initial period of low leverage, a significant spike in borrowing during the late 2000s, and a long-term trend toward deleveraging driven by substantial equity growth.
- Leverage Expansion (2007–2008)
- A sharp increase in long-term debt occurred between 2006 and 2008, with obligations rising from approximately 438.9 million USD to 2.65 billion USD. This surge resulted in the debt-to-equity ratio peaking at 1.63 in 2008, representing the highest level of financial leverage recorded during the analyzed period.
- Deleveraging and Stabilization (2009–2013)
- Following the 2008 peak, the debt-to-equity ratio entered a period of gradual decline, falling from 1.12 in 2009 to 0.83 by 2013. This trend was supported by a combination of modest debt reductions and a consistent increase in total equity, which grew from 1.99 billion USD in 2009 to 2.55 billion USD by 2013.
- Equity-Driven Ratio Reduction (2014–2021)
- Despite a temporary increase in long-term debt to 3.02 billion USD in 2014, the subsequent years were characterized by aggressive equity accumulation. Total equity grew from 2.91 billion USD in 2014 to 6.30 billion USD by 2021. This expansion of the equity base outweighed the growth in nominal debt, driving the debt-to-equity ratio down to 0.49 by the end of 2021.
The overall trajectory indicates a strategic shift from a highly leveraged position in 2008 to a more conservative capital structure by 2021. While absolute debt levels remained significantly higher in 2021 than in 2005, the proportional weight of debt relative to equity has returned to near-initial levels due to the substantial growth in the company's equity base.
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Comparison to Competitors
Steel Dynamics Inc., debt to equity, long-term trends, comparison to competitors
| Steel Dynamics Inc. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2021 | 0.49 | 0.68 |
| Dec 31, 2020 | 0.71 | 0.95 |
| Dec 31, 2019 | 0.67 | 1.06 |
| Dec 31, 2018 | 0.60 | 1.14 |
| Dec 31, 2017 | 0.71 | 1.64 |
| Dec 31, 2016 | 0.81 | 2.65 |
| Dec 31, 2015 | 0.97 | 2.61 |
| Dec 31, 2014 | 1.04 | 1.04 |
| Dec 31, 2013 | 0.83 | 0.99 |
| Dec 31, 2012 | 0.92 | 0.20 |
| Dec 31, 2011 | 1.03 | 0.23 |
| Dec 31, 2010 | 1.14 | 0.38 |
| Dec 31, 2009 | 1.12 | 0.70 |
| Dec 31, 2008 | 1.63 | 1.27 |
| Dec 31, 2007 | 1.33 | 0.40 |
| Dec 31, 2006 | 0.36 | 0.28 |
| Dec 31, 2005 | 0.50 | 0.68 |
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., debt to equity, long-term trends, comparison to industry (materials)
| Steel Dynamics Inc. | Materials | |
|---|---|---|
| Dec 31, 2021 | 0.49 | 0.55 |
| Dec 31, 2020 | 0.71 | 0.56 |
| Dec 31, 2019 | 0.67 | 0.52 |
| Dec 31, 2018 | 0.60 | 0.55 |
| Dec 31, 2017 | 0.71 | 1.85 |
| Dec 31, 2016 | 0.81 | 2.12 |
| Dec 31, 2015 | 0.97 | 2.42 |
| Dec 31, 2014 | 1.04 | 1.21 |
| Dec 31, 2013 | 0.83 | 1.07 |
| Dec 31, 2012 | 0.92 | 0.50 |
| Dec 31, 2011 | 1.03 | 0.49 |
| Dec 31, 2010 | 1.14 | 0.57 |
| Dec 31, 2009 | 1.12 | 0.77 |
| Dec 31, 2008 | 1.63 | 1.16 |
| Dec 31, 2007 | 1.33 | 0.49 |
| Dec 31, 2006 | 0.36 | 0.53 |
| Dec 31, 2005 | 0.50 | 0.71 |
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).