Return on Equity (ROE)
since 2005
Calculation
Steel Dynamics Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Steel Dynamics, Inc.1 | ÷ | Total Steel Dynamics, Inc. equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 50.98% | = | 100 | × | 3,214,066) | ÷ | 6,304,641) |
| Dec 31, 2020 | 12.68% | = | 100 | × | 550,822) | ÷ | 4,345,164) |
| Dec 31, 2019 | 16.47% | = | 100 | × | 671,103) | ÷ | 4,075,834) |
| Dec 31, 2018 | 31.98% | = | 100 | × | 1,258,379) | ÷ | 3,935,071) |
| Dec 31, 2017 | 24.25% | = | 100 | × | 812,741) | ÷ | 3,351,574) |
| Dec 31, 2016 | 13.05% | = | 100 | × | 382,115) | ÷ | 2,927,020) |
| Dec 31, 2015 | -4.86% | = | 100 | × | (130,311) | ÷ | 2,679,727) |
| Dec 31, 2014 | 5.39% | = | 100 | × | 157,024) | ÷ | 2,913,015) |
| Dec 31, 2013 | 7.43% | = | 100 | × | 189,314) | ÷ | 2,547,323) |
| Dec 31, 2012 | 6.80% | = | 100 | × | 163,551) | ÷ | 2,405,465) |
| Dec 31, 2011 | 12.01% | = | 100 | × | 278,120) | ÷ | 2,315,941) |
| Dec 31, 2010 | 6.72% | = | 100 | × | 140,709) | ÷ | 2,092,870) |
| Dec 31, 2009 | -0.41% | = | 100 | × | (8,184) | ÷ | 1,988,268) |
| Dec 31, 2008 | 28.54% | = | 100 | × | 463,386) | ÷ | 1,623,886) |
| Dec 31, 2007 | 25.80% | = | 100 | × | 394,566) | ÷ | 1,529,196) |
| Dec 31, 2006 | 32.22% | = | 100 | × | 396,707) | ÷ | 1,231,108) |
| Dec 31, 2005 | 25.21% | = | 100 | × | 221,785) | ÷ | 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 Return on Equity (ROE) for the period between 2005 and 2021 exhibits significant volatility, characterized by cyclical fluctuations that align with shifts in net income. While total equity maintained a consistent upward trajectory, growing from approximately 879.9 million USD in 2005 to 6.3 billion USD by 2021, the ROE experienced several distinct phases of expansion and contraction.
- Initial High Performance and First Contraction (2005–2009)
- A period of strong profitability is observed from 2005 to 2008, with ROE peaking at 32.22% in 2006. This phase ended abruptly in 2009, where a net loss of 8.18 million USD resulted in a negative ROE of -0.41%, marking the first major downturn in the observed period.
- Period of Moderate Returns and Second Contraction (2010–2015)
- Following the 2009 downturn, ROE entered a phase of relative stagnation and instability. Between 2010 and 2014, the ratio fluctuated between a high of 12.01% and a low of 5.39%. This volatility culminated in another net loss in 2015, which drove the ROE down to -4.86%.
- Accelerated Growth and Peak Performance (2016–2021)
- A sustained recovery began in 2016, with ROE climbing steadily to reach 31.98% by 2018. Although a temporary decline occurred in 2019 and 2020, with values dropping to 16.47% and 12.68% respectively, a substantial surge occurred in 2021. The ROE reached a historical peak of 50.98%, driven by a sharp increase in net income to 3.21 billion USD.
The analysis reveals a divergence between equity growth and profitability trends. While the company consistently expanded its equity base over 17 years, the ROE was primarily dictated by the high variance in annual net income. The extreme peak in 2021 suggests a period of exceptional operational efficiency or market conditions where earnings growth exponentially outpaced the growth of the equity base.
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Comparison to Competitors
Steel Dynamics Inc., ROE, long-term trends, comparison to competitors
| Steel Dynamics Inc. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2021 | 50.98% | 30.80% |
| Dec 31, 2020 | 12.68% | 5.89% |
| Dec 31, 2019 | 16.47% | -2.57% |
| Dec 31, 2018 | 31.98% | 26.56% |
| Dec 31, 2017 | 24.25% | 22.78% |
| Dec 31, 2016 | 13.05% | -68.65% |
| Dec 31, 2015 | -4.86% | -156.31% |
| Dec 31, 2014 | 5.39% | -7.15% |
| Dec 31, 2013 | 7.43% | 12.70% |
| Dec 31, 2012 | 6.80% | 17.33% |
| Dec 31, 2011 | 12.01% | 29.15% |
| Dec 31, 2010 | 6.72% | 34.68% |
| Dec 31, 2009 | -0.41% | 30.15% |
| Dec 31, 2008 | 28.54% | -191.70% |
| Dec 31, 2007 | 25.80% | 16.33% |
| Dec 31, 2006 | 32.22% | 59.57% |
| Dec 31, 2005 | 25.21% | 54.00% |
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., ROE, long-term trends, comparison to industry (materials)
| Steel Dynamics Inc. | Materials | |
|---|---|---|
| Dec 31, 2021 | 50.98% | 16.54% |
| Dec 31, 2020 | 12.68% | 8.40% |
| Dec 31, 2019 | 16.47% | 5.74% |
| Dec 31, 2018 | 31.98% | 12.42% |
| Dec 31, 2017 | 24.25% | 27.34% |
| Dec 31, 2016 | 13.05% | -11.75% |
| Dec 31, 2015 | -4.86% | -73.64% |
| Dec 31, 2014 | 5.39% | 5.03% |
| Dec 31, 2013 | 7.43% | 17.62% |
| Dec 31, 2012 | 6.80% | 21.12% |
| Dec 31, 2011 | 12.01% | 29.47% |
| Dec 31, 2010 | 6.72% | 30.11% |
| Dec 31, 2009 | -0.41% | 27.87% |
| Dec 31, 2008 | 28.54% | -82.36% |
| Dec 31, 2007 | 25.80% | 18.96% |
| Dec 31, 2006 | 32.22% | 33.59% |
| Dec 31, 2005 | 25.21% | 29.22% |
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).