Return on Assets (ROA)
since 2005
Calculation
Steel Dynamics Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Steel Dynamics, Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 25.65% | = | 100 | × | 3,214,066) | ÷ | 12,531,234) |
| Dec 31, 2020 | 5.94% | = | 100 | × | 550,822) | ÷ | 9,265,562) |
| Dec 31, 2019 | 8.11% | = | 100 | × | 671,103) | ÷ | 8,275,765) |
| Dec 31, 2018 | 16.34% | = | 100 | × | 1,258,379) | ÷ | 7,703,563) |
| Dec 31, 2017 | 11.85% | = | 100 | × | 812,741) | ÷ | 6,855,732) |
| Dec 31, 2016 | 5.95% | = | 100 | × | 382,115) | ÷ | 6,423,732) |
| Dec 31, 2015 | -2.10% | = | 100 | × | (130,311) | ÷ | 6,202,082) |
| Dec 31, 2014 | 2.15% | = | 100 | × | 157,024) | ÷ | 7,311,027) |
| Dec 31, 2013 | 3.19% | = | 100 | × | 189,314) | ÷ | 5,933,006) |
| Dec 31, 2012 | 2.81% | = | 100 | × | 163,551) | ÷ | 5,815,416) |
| Dec 31, 2011 | 4.65% | = | 100 | × | 278,120) | ÷ | 5,979,226) |
| Dec 31, 2010 | 2.52% | = | 100 | × | 140,709) | ÷ | 5,589,934) |
| Dec 31, 2009 | -0.16% | = | 100 | × | (8,184) | ÷ | 5,129,872) |
| Dec 31, 2008 | 8.82% | = | 100 | × | 463,386) | ÷ | 5,253,577) |
| Dec 31, 2007 | 8.73% | = | 100 | × | 394,566) | ÷ | 4,519,453) |
| Dec 31, 2006 | 17.65% | = | 100 | × | 396,707) | ÷ | 2,247,017) |
| Dec 31, 2005 | 12.62% | = | 100 | × | 221,785) | ÷ | 1,757,687) |
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 Return on Assets (ROA) from 2005 to 2021 exhibits significant volatility, characterized by cyclical fluctuations that align with shifts in net income. While total assets maintained a consistent upward trajectory over the sixteen-year period, the efficiency of these assets in generating profit varied substantially, reflecting the inherent volatility of the operational environment.
- Asset Base Expansion
- A steady long-term increase in total assets is observed, growing from $1.76 billion in 2005 to $12.53 billion by 2021. This expansion indicates a continuous investment in the company's resource base, though the rate of asset growth did not always correlate linearly with profitability.
- Profitability Cycles and Drawdowns
- The ROA experienced two primary periods of contraction. The first occurred between 2007 and 2009, where ROA fell from 8.73% to a negative 0.16% following a net loss in 2009. A second significant downturn peaked in 2015, with ROA reaching -2.10% as net income dropped to negative $130.3 million. These periods highlight a sensitivity to external market pressures that temporarily neutralized asset productivity.
- Recovery and Peak Performance
- A strong recovery phase began in 2016, with ROA climbing steadily to reach 16.34% by 2018. Despite a moderate decline in 2019 and 2020, the period concluded with an exceptional surge in 2021. During this final year, ROA reached a historical peak of 25.65%, driven by a sharp increase in net income to $3.21 billion, representing the highest level of asset utilization efficiency in the analyzed timeframe.
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Comparison to Competitors
Steel Dynamics Inc., ROA, long-term trends, comparison to competitors
| Steel Dynamics Inc. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2021 | 25.65% | 8.97% |
| Dec 31, 2020 | 5.94% | 1.42% |
| Dec 31, 2019 | 8.11% | -0.59% |
| Dec 31, 2018 | 16.34% | 6.16% |
| Dec 31, 2017 | 11.85% | 4.87% |
| Dec 31, 2016 | 5.95% | -11.13% |
| Dec 31, 2015 | -2.10% | -26.27% |
| Dec 31, 2014 | 2.15% | -2.22% |
| Dec 31, 2013 | 3.19% | 4.19% |
| Dec 31, 2012 | 2.81% | 8.58% |
| Dec 31, 2011 | 4.65% | 14.22% |
| Dec 31, 2010 | 2.52% | 14.76% |
| Dec 31, 2009 | -0.16% | 10.57% |
| Dec 31, 2008 | 8.82% | -47.39% |
| Dec 31, 2007 | 8.73% | 7.32% |
| Dec 31, 2006 | 17.65% | 27.02% |
| Dec 31, 2005 | 12.62% | 17.93% |
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., ROA, long-term trends, comparison to industry (materials)
| Steel Dynamics Inc. | Materials | |
|---|---|---|
| Dec 31, 2021 | 25.65% | 6.65% |
| Dec 31, 2020 | 5.94% | 3.40% |
| Dec 31, 2019 | 8.11% | 2.43% |
| Dec 31, 2018 | 16.34% | 5.23% |
| Dec 31, 2017 | 11.85% | 6.22% |
| Dec 31, 2016 | 5.95% | -2.40% |
| Dec 31, 2015 | -2.10% | -13.63% |
| Dec 31, 2014 | 2.15% | 1.48% |
| Dec 31, 2013 | 3.19% | 5.73% |
| Dec 31, 2012 | 2.81% | 8.98% |
| Dec 31, 2011 | 4.65% | 12.44% |
| Dec 31, 2010 | 2.52% | 12.03% |
| Dec 31, 2009 | -0.16% | 9.94% |
| Dec 31, 2008 | 8.82% | -22.98% |
| Dec 31, 2007 | 8.73% | 8.10% |
| Dec 31, 2006 | 17.65% | 14.06% |
| Dec 31, 2005 | 12.62% | 10.70% |
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).