Operating Profit Margin
since 2005
Calculation
Steel Dynamics Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 23.36% | = | 100 | × | 4,301,105) | ÷ | 18,408,850) |
| Dec 31, 2020 | 8.82% | = | 100 | × | 847,142) | ÷ | 9,601,482) |
| Dec 31, 2019 | 9.43% | = | 100 | × | 986,880) | ÷ | 10,464,991) |
| Dec 31, 2018 | 14.57% | = | 100 | × | 1,722,409) | ÷ | 11,821,839) |
| Dec 31, 2017 | 11.18% | = | 100 | × | 1,066,881) | ÷ | 9,538,797) |
| Dec 31, 2016 | 9.36% | = | 100 | × | 727,966) | ÷ | 7,777,109) |
| Dec 31, 2015 | -0.96% | = | 100 | × | (72,784) | ÷ | 7,594,411) |
| Dec 31, 2014 | 3.66% | = | 100 | × | 320,320) | ÷ | 8,755,952) |
| Dec 31, 2013 | 5.24% | = | 100 | × | 386,525) | ÷ | 7,372,924) |
| Dec 31, 2012 | 5.37% | = | 100 | × | 391,165) | ÷ | 7,290,234) |
| Dec 31, 2011 | 7.31% | = | 100 | × | 584,820) | ÷ | 7,997,500) |
| Dec 31, 2010 | 5.79% | = | 100 | × | 364,753) | ÷ | 6,300,887) |
| Dec 31, 2009 | 3.02% | = | 100 | × | 119,531) | ÷ | 3,958,806) |
| Dec 31, 2008 | 10.58% | = | 100 | × | 855,240) | ÷ | 8,080,521) |
| Dec 31, 2007 | 15.76% | = | 100 | × | 691,154) | ÷ | 4,384,549) |
| Dec 31, 2006 | 20.35% | = | 100 | × | 659,114) | ÷ | 3,238,787) |
| Dec 31, 2005 | 18.00% | = | 100 | × | 393,175) | ÷ | 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 operating profit margin exhibited significant volatility over the 17-year period from 2005 to 2021, characterized by distinct cyclical swings, a period of prolonged stagnation, and a record peak in the final year of the analysis.
- Initial Performance and Primary Contraction (2005–2009)
- The period began with strong profitability, peaking at 20.35% in 2006. This was followed by a sharp and sustained decline, with the margin dropping to 15.76% in 2007 and 10.58% in 2008. The contraction reached a cyclical low in 2009, where the operating profit margin fell to 3.02%.
- Period of Instability and Operating Loss (2010–2015)
- Following the 2009 trough, margins remained suppressed and unstable. While a modest recovery to 7.31% was observed in 2011, the margin trended downward again over the next four years. This decline culminated in 2015, when the entity experienced an operating loss, resulting in a negative operating profit margin of -0.96%.
- Recovery and Exceptional Growth (2016–2021)
- A robust recovery began in 2016, with the operating profit margin returning to 9.36% and climbing to 14.57% by 2018. After a brief period of stabilization between 2019 and 2020, where margins hovered between 8.82% and 9.43%, a substantial surge occurred in 2021. In that final year, the operating profit margin reached its highest point in the observed history at 23.36%, supported by a significant increase in both operating income and net sales.
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Comparison to Competitors
Steel Dynamics Inc., operating profit margin, long-term trends, comparison to competitors
| Steel Dynamics Inc. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2021 | 23.36% | 36.62% |
| Dec 31, 2020 | 8.82% | 17.16% |
| Dec 31, 2019 | 9.43% | 7.58% |
| Dec 31, 2018 | 14.57% | 25.52% |
| Dec 31, 2017 | 11.18% | 22.15% |
| Dec 31, 2016 | 9.36% | -18.83% |
| Dec 31, 2015 | -0.96% | -84.29% |
| Dec 31, 2014 | 3.66% | 0.45% |
| Dec 31, 2013 | 5.24% | 25.58% |
| Dec 31, 2012 | 5.37% | 32.28% |
| Dec 31, 2011 | 7.31% | 43.77% |
| Dec 31, 2010 | 5.79% | 47.77% |
| Dec 31, 2009 | 3.02% | 43.24% |
| Dec 31, 2008 | 10.58% | -71.42% |
| Dec 31, 2007 | 15.76% | 38.70% |
| Dec 31, 2006 | 20.35% | 49.54% |
| Dec 31, 2005 | 18.00% | 52.10% |
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).