Stock Analysis on Net

Steel Dynamics Inc. (NASDAQ:STLD)

$22.49

This company has been moved to the archive! The financial data has not been updated since October 26, 2022.

Debt to Equity
since 2005

Microsoft Excel

Paying user area


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Calculation

Steel Dynamics Inc., debt to equity, long-term trends, calculation

Microsoft Excel

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


Long-term Debt
The long-term debt, including current maturities, displayed significant fluctuations over the period analyzed. Initially, it remained relatively stable around 440 million US$ until 2006, after which there was a sharp increase peaking at approximately 2.65 billion US$ in 2008. Subsequently, a declining trend is noticeable until 2012, followed by a period of variability. From 2013 onward, the debt generally increased again, reaching its highest level of over 3.1 billion US$ in 2021, indicating a trend towards increased leverage in recent years.
Equity
Equity showed a strong upward trajectory throughout the period. Starting near 880 million US$ in 2005, it steadily increased every year, surpassing 6.3 billion US$ by 2021. This consistent equity growth reflects ongoing accumulation of retained earnings or capital contributions, and signals increasing net worth and financial strength over time.
Debt to Equity Ratio
The debt to equity ratio exhibited substantial volatility. It started at 0.5 in 2005, declined to 0.36 in 2006, but then sharply rose above 1.3 and 1.6 in 2007 and 2008 respectively, corresponding with the surge in debt during those years. From 2009 forward, a general downward trend is observed, with ratios generally falling below 1.0 and reaching a low of 0.49 in 2021. This indicates a strategic reduction in financial leverage relative to equity, especially in later years, suggesting improved balance sheet stability and lower risk exposure.
Overall Trends and Insights
The data reveal a pattern of aggressive debt accumulation around the late 2000s, followed by debt reduction and controlled leverage in the following decade. Meanwhile, equity grew steadily over the entire period, resulting in improved equity base and lower relative debt levels post-2012. The decreasing debt to equity ratio in recent years indicates a conservative financial approach with emphasis on strengthening the equity base and maintaining manageable debt levels. The increase in both debt and equity in the final years suggests expansion activities financed through a balanced mix of debt and equity, highlighting an ongoing focus on financial growth and stability.

Comparison to Competitors

Steel Dynamics Inc., debt to equity, long-term trends, comparison to competitors

Microsoft Excel

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)

Microsoft Excel

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).