Net Profit Margin
since 2005
Calculation
Steel Dynamics Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to Steel Dynamics, Inc.1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 17.46% | = | 100 | × | 3,214,066) | ÷ | 18,408,850) |
| Dec 31, 2020 | 5.74% | = | 100 | × | 550,822) | ÷ | 9,601,482) |
| Dec 31, 2019 | 6.41% | = | 100 | × | 671,103) | ÷ | 10,464,991) |
| Dec 31, 2018 | 10.64% | = | 100 | × | 1,258,379) | ÷ | 11,821,839) |
| Dec 31, 2017 | 8.52% | = | 100 | × | 812,741) | ÷ | 9,538,797) |
| Dec 31, 2016 | 4.91% | = | 100 | × | 382,115) | ÷ | 7,777,109) |
| Dec 31, 2015 | -1.72% | = | 100 | × | (130,311) | ÷ | 7,594,411) |
| Dec 31, 2014 | 1.79% | = | 100 | × | 157,024) | ÷ | 8,755,952) |
| Dec 31, 2013 | 2.57% | = | 100 | × | 189,314) | ÷ | 7,372,924) |
| Dec 31, 2012 | 2.24% | = | 100 | × | 163,551) | ÷ | 7,290,234) |
| Dec 31, 2011 | 3.48% | = | 100 | × | 278,120) | ÷ | 7,997,500) |
| Dec 31, 2010 | 2.23% | = | 100 | × | 140,709) | ÷ | 6,300,887) |
| Dec 31, 2009 | -0.21% | = | 100 | × | (8,184) | ÷ | 3,958,806) |
| Dec 31, 2008 | 5.73% | = | 100 | × | 463,386) | ÷ | 8,080,521) |
| Dec 31, 2007 | 9.00% | = | 100 | × | 394,566) | ÷ | 4,384,549) |
| Dec 31, 2006 | 12.25% | = | 100 | × | 396,707) | ÷ | 3,238,787) |
| Dec 31, 2005 | 10.15% | = | 100 | × | 221,785) | ÷ | 2,184,866) |
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 financial performance of Steel Dynamics Inc. from 2005 to 2021 is characterized by substantial volatility in net profit margins, illustrating the cyclical nature of the steel industry and the company's sensitivity to market fluctuations.
- Early Performance and Initial Decline
- Between 2005 and 2008, profitability experienced an initial peak, with net profit margins rising from 10.15% to 12.25% in 2006 before entering a steady decline. By 2008, the margin had contracted to 5.73%, signaling the onset of a broader downturn.
- Cyclical Contractions and Low-Margin Eras
- The company faced two distinct periods of negative profitability. The first occurred in 2009, with a net profit margin of -0.21%. A subsequent period of relative stability followed from 2010 to 2014, where margins remained suppressed in the low single digits, ranging between 1.79% and 3.48%. A second contraction occurred in 2015, with the net profit margin falling to -1.72%, resulting in a net loss of approximately $130.3 million.
- Recovery and Expansion Phase
- A sustained recovery began in 2016, with margins climbing from 4.91% to a peak of 10.64% in 2018. This growth was supported by an increase in net sales, which grew from $7.7 billion in 2016 to $11.8 billion in 2018. Although margins moderated slightly in 2019 and 2020 to 6.41% and 5.74% respectively, the company maintained positive earnings.
- Record Profitability Surge
- The period concluded with an exceptional increase in profitability in 2021. The net profit margin reached a historic high of 17.46%, driven by a significant escalation in both net sales, which rose to $18.4 billion, and net income, which surged to $3.2 billion. This represents the highest level of conversion from revenue to profit across the entire 16-year period.
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Comparison to Competitors
Steel Dynamics Inc., net profit margin, long-term trends, comparison to competitors
| Steel Dynamics Inc. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2021 | 17.46% | 18.85% |
| Dec 31, 2020 | 5.74% | 4.22% |
| Dec 31, 2019 | 6.41% | -1.66% |
| Dec 31, 2018 | 10.64% | 13.97% |
| Dec 31, 2017 | 8.52% | 11.08% |
| Dec 31, 2016 | 4.91% | -28.01% |
| Dec 31, 2015 | -1.72% | -77.07% |
| Dec 31, 2014 | 1.79% | -6.10% |
| Dec 31, 2013 | 2.57% | 12.70% |
| Dec 31, 2012 | 2.24% | 16.89% |
| Dec 31, 2011 | 3.48% | 21.84% |
| Dec 31, 2010 | 2.23% | 22.84% |
| Dec 31, 2009 | -0.21% | 18.28% |
| Dec 31, 2008 | 5.73% | -62.19% |
| Dec 31, 2007 | 9.00% | 17.57% |
| Dec 31, 2006 | 12.25% | 25.15% |
| Dec 31, 2005 | 10.15% | 23.81% |
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., net profit margin, long-term trends, comparison to industry (materials)
| Steel Dynamics Inc. | Materials | |
|---|---|---|
| Dec 31, 2021 | 17.46% | 13.59% |
| Dec 31, 2020 | 5.74% | 8.58% |
| Dec 31, 2019 | 6.41% | 5.93% |
| Dec 31, 2018 | 10.64% | 15.85% |
| Dec 31, 2017 | 8.52% | 11.29% |
| Dec 31, 2016 | 4.91% | -4.09% |
| Dec 31, 2015 | -1.72% | -25.36% |
| Dec 31, 2014 | 1.79% | 2.79% |
| Dec 31, 2013 | 2.57% | 12.00% |
| Dec 31, 2012 | 2.24% | 13.84% |
| Dec 31, 2011 | 3.48% | 16.32% |
| Dec 31, 2010 | 2.23% | 16.25% |
| Dec 31, 2009 | -0.21% | 14.28% |
| Dec 31, 2008 | 5.73% | -25.65% |
| Dec 31, 2007 | 9.00% | 13.89% |
| Dec 31, 2006 | 12.25% | 13.78% |
| Dec 31, 2005 | 10.15% | 11.48% |
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).