Steel Dynamics Inc. (NASDAQ:STLD)

The financial data reveals several notable trends in operational efficiency, liquidity, leverage, and profitability over the analyzed periods.

Asset Turnover

The reported and adjusted total asset turnover ratios fluctuated over the five-year period, with an initial increase from 1.39 in 2017 to a peak of approximately 1.53 in 2018, followed by a decline to 1.04 in 2020. The ratio then rebounded to 1.47 in 2021. This pattern indicates variability in asset utilization efficiency, with a notable dip during 2019-2020 before recovery.

Liquidity

The reported and adjusted current ratios remained relatively high throughout the period, consistently exceeding 3.0, but showed a decreasing trend from around 4.0 in 2017-2019 to 3.1 by 2021. This suggests a gradual reduction in short-term liquidity buffer, though the company maintained a strong capacity to cover current liabilities.

Leverage

Both reported and adjusted debt to equity ratios declined from 0.71 and 0.67 respectively in 2017 to approximately 0.49 and 0.45 by 2021, indicating a reduction in financial leverage. Similarly, debt to capital ratios demonstrated a downward trend from about 0.42 to 0.33 (reported) and 0.31 (adjusted) over the same timeframe. Financial leverage ratios showed a slight decrease, particularly in adjusted figures, suggesting moderate deleveraging and a more conservative capital structure in later years.

Profitability

Profit margin showed variability with an initial increase from around 7-8% in 2017 to over 10% in 2018, followed by declines during 2019-2020, and then a substantial increase to about 17-19% in 2021. This trend points to fluctuating profitability with a strong improvement in the latest period.

Return on equity (ROE) followed a similar trajectory, with a peak near 32% in 2018, a decline through 2020, and a remarkable rise to nearly 51% in 2021. Adjusted ROE figures mirrored this pattern, confirming robust shareholder returns in the most recent year after a period of contraction.

Return on assets (ROA), reflecting overall asset efficiency, showed an initial increase, then declined, and ultimately surged to approximately 26-28% in 2021. This confirms improved effectiveness in generating profits from assets in the last recorded year.

In summary, the company experienced fluctuations in operational efficiency and liquidity, coupled with a gradual reduction in leverage. Profitability indicators, especially in the final year, demonstrated significant improvement, suggesting enhanced earnings performance and effective capital utilization following earlier periods of decline or stagnation.

The financial data demonstrates notable fluctuations and developments across various key metrics over the five-year period.

Net Sales

There is an overall increasing trend in net sales, with figures rising from approximately 9.5 billion US dollars in 2017 to over 18.4 billion US dollars in 2021. However, this growth is not linear. After a significant increase from 2017 to 2018, net sales declined in 2019 and 2020, before sharply rebounding in 2021. This suggests variability in sales performance potentially influenced by market conditions or internal factors.

Total Assets

Total assets show a consistent upward trajectory during the period, growing steadily from about 6.9 billion US dollars in 2017 to more than 12.5 billion US dollars in 2021. This indicates ongoing investment or asset accumulation, supporting the company's expanding operations or capacity.

Reported Total Asset Turnover

This ratio, indicating efficiency in using assets to generate sales, displays some variability. It increased modestly from 1.39 in 2017 to a peak of 1.53 in 2018, then decreased to a low of 1.04 in 2020 before recovering to 1.47 in 2021. The decline during 2019 and 2020 aligns with the observed drop in net sales, reflecting reduced asset utilization efficiency during those years, with improvement evident in the latest period.

Adjusted Total Assets

Adjusted total assets closely mirror the pattern of total assets, showing steady growth from approximately 6.9 billion US dollars to over 12.5 billion US dollars by 2021. The alignment between reported and adjusted figures suggests limited adjustments or reclassifications impacting the measure of assets significantly during this timeframe.

Adjusted Total Asset Turnover

This metric follows the same trend as the reported total asset turnover, reinforcing the observation of fluctuating asset efficiency. The pattern of increase through 2018, decline through 2020, and resurgence in 2021 corresponds to changes in net sales and asset base over the years, confirming a close relationship between sales performance and asset use efficiency.

Current Assets

Current assets exhibited a generally increasing trend from 2017 through 2021. Starting at approximately 3.51 billion US dollars in 2017, these assets grew modestly to around 4.26 billion in 2019, stabilized in 2020, and then experienced a significant increase to about 6.90 billion in 2021. This upward movement suggests enhanced liquidity or growth in short-term resources available within the year 2021.

Current Liabilities

Current liabilities increased consistently over the observed period. The amount rose from approximately 869 million in 2017 to roughly 2.23 billion by 2021, demonstrating more than a twofold increase. The most notable growth occurred between 2020 and 2021, indicating an expansion in short-term obligations or potential increases in operational financing requirements.

Reported Current Ratio

The reported current ratio remained above 3.0 throughout the period, indicating a generally strong liquidity position. However, a downward trend is observed from a peak of 4.22 in 2019 to 3.10 in 2021. Despite remaining above the commonly accepted threshold of 1.0, the declining ratio suggests that while liquidity remains healthy, the proximity between current assets and liabilities narrowed, primarily due to the faster increase in liabilities relative to assets in later years.

Adjusted Current Assets

Adjusted current assets closely mirror the trend in reported current assets, with values slightly higher each year. This indicates minimal adjustments made to asset valuations. The trajectory similarly shows steady growth up to 2019, a plateau in 2020, and a sharp increase in 2021 aligning with the reported figures, reaffirming the strengthened liquidity position during the last period.

Adjusted Current Ratio

The adjusted current ratio follows the same trend as the reported current ratio, starting at 4.06 in 2017 and declining to 3.10 in 2021. This consistency between reported and adjusted ratios suggests that adjustments to assets had negligible impact on the overall liquidity assessment. The declining trend underscores the importance of monitoring short-term liability growth against asset expansions to maintain liquidity strength.

Total Debt

Total debt exhibited a gradual increase from 2,381,940 thousand US dollars in 2017 to 3,105,876 thousand in 2021. Notable growth occurred between 2018 and 2020, reflecting a rise of approximately 30% in this period, followed by a stabilization in 2021.

Total Equity

Total equity demonstrated a consistent upward trend over the five-year span, increasing from 3,351,574 thousand US dollars in 2017 to 6,304,641 thousand in 2021. The most significant increase occurred between 2020 and 2021, indicating a strong equity base enhancement during that period.

Reported Debt to Equity Ratio

The reported debt to equity ratio showed a general decline from 0.71 in 2017 to 0.49 in 2021. This decreasing trend suggests improving leverage and financial stability, with the lowest ratio observed in 2021, indicating reduced reliance on debt relative to equity.

Adjusted Total Debt

Adjusted total debt followed a pattern similar to reported total debt, steadily increasing from 2,429,040 thousand US dollars in 2017 to 3,205,950 thousand in 2021. The consistent rise reflects growing obligations after adjustments, maintaining close alignment with the reported figures.

Adjusted Total Equity

Adjusted total equity rose from 3,627,293 thousand US dollars in 2017 to 7,181,237 thousand in 2021. This continuous increase suggests strengthening equity position post-adjustments, with notable acceleration in capital growth especially in the last year under review.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased from 0.67 in 2017 to 0.45 in 2021, mirroring the pattern observed in the reported ratio. This decline represents an improvement in financial leverage when considering adjusted figures, indicating a stronger capital structure and reduced financial risk towards the end of the period.

Summary

Overall, the data indicates a trend of increasing debt levels that are outpaced by more substantial growth in equity, both reported and adjusted. The consistent decrease in debt to equity ratios (reported and adjusted) points to an improving leverage position over the period analyzed. The sizeable jump in equity in the final year enhances the capital base, which likely reduces financial risk and improvement in solvency. The company's financial structure appears to be strengthening, showing greater reliance on equity financing relative to debt.

The financial data reveals several notable trends over the five-year period ending in 2021. Total debt has shown a consistent upward trajectory, increasing from approximately 2.38 billion US dollars in 2017 to about 3.11 billion US dollars in 2021. This growth indicates a rising reliance on debt financing during this period.

Total capital has also increased steadily, moving from 5.73 billion US dollars in 2017 to 9.41 billion US dollars in 2021. The growth in total capital outpaces the rise in total debt, reflecting an expansion in the company's overall capital structure.

The reported debt to capital ratio illustrates a moderate decline, starting at 0.42 in 2017, dipping to 0.38 in 2018, peaking again at 0.42 in 2020, and then dropping significantly to 0.33 in 2021. This suggests that despite increasing debt levels, the company's capital base has grown sufficiently to reduce the proportion of debt relative to total capital, particularly in the most recent year.

Adjusted total debt values closely mirror the reported total debt figures but are slightly higher each year. They increase from about 2.43 billion US dollars in 2017 to 3.21 billion US dollars in 2021. Similarly, adjusted total capital increases from 6.06 billion US dollars to approximately 10.39 billion US dollars over the same period, maintaining a consistent upward trend.

The adjusted debt to capital ratio follows a pattern similar to the reported ratio, decreasing from 0.40 in 2017 to 0.31 in 2021 after modest fluctuations. This trend further confirms the company’s decreasing leverage relative to its capital base when adjustments are considered.

Overall, the data suggests a strategic strengthening of the company’s capital position over these years, characterized by growth in capital that outpaces debt accumulation, resulting in gradually improved leverage ratios. This may imply enhanced financial stability and potentially increased capacity for future borrowing or investment.

Total Debt

Consistently increasing over five years, from 2.38 billion to 3.11 billion US dollars.

Total Capital

Steady growth from 5.73 billion to 9.41 billion US dollars, outpacing debt growth.

Reported Debt to Capital Ratio

Fluctuated between 0.42 and 0.38 initially, peaked at 0.42 in 2020, then declined to 0.33 in 2021.

Adjusted Total Debt and Capital

Show similar upward trends as reported values, with adjusted debt slightly higher; capital expanded significantly.

Adjusted Debt to Capital Ratio

Decreased from 0.40 to 0.31, indicating reduced leverage after adjustments.

Overall Insight

Progressive capital growth surpassing debt increases resulted in improved leverage positions suggesting enhanced financial robustness.

Total Assets

The total assets increased steadily over the five-year period, rising from approximately $6.86 billion in 2017 to over $12.53 billion in 2021. This represents a significant growth trend, with the most substantial increase occurring between 2020 and 2021.

Total Equity

Total reported equity also exhibited consistent growth, increasing from about $3.35 billion in 2017 to $6.30 billion in 2021. The growth was steady each year, with an accelerated increase in equity noticeable in 2021.

Reported Financial Leverage

The reported financial leverage, defined as the ratio of total assets to equity, fluctuated moderately within a narrow band. It started at 2.05 in 2017, slightly decreased to 1.96 in 2018, then rose to 2.13 by 2020 before settling back to 1.99 in 2021. This indicates a stable leverage position with only minor variations over the years.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets but were consistently slightly higher. They grew from approximately $6.92 billion in 2017 to $12.54 billion in 2021, mirroring the upward trend in total assets and confirming asset expansion over the period.

Adjusted Total Equity

Adjusted equity showed a continuous upward trend from around $3.63 billion in 2017 to approximately $7.18 billion in 2021. This growth exceeded that of reported equity, suggesting adjustments recognized additional equity growth or revaluations.

Adjusted Financial Leverage

The adjusted financial leverage declined gradually from 1.91 in 2017 to 1.75 in 2021, reaching its lowest value at the end of the period. This trend suggests a modest reduction in leverage when adjustments are considered, indicating a potentially stronger equity base relative to assets.

Summary

Overall, the data reveals a clear expansion in both assets and equity for the company. While reported financial leverage remained relatively stable with slight fluctuation, the adjusted leverage ratio declined modestly, implying a strengthening capital structure when adjustment factors are taken into account. The growth in equity outpaced the growth in assets in adjusted terms, which may reflect effective equity management and asset revaluation strategies over the period examined.

The financial data reveals several important trends over the five-year period examined.

Net Income Attributable to the Company (US$ in thousands)

Net income experienced fluctuations, with a notable peak occurring in 2021, reaching 3,214,066 thousand US dollars. The value increased substantially from 812,741 thousand in 2017 to 1,258,379 thousand in 2018, declined in 2019 and 2020, before surging dramatically in 2021. This signifies a significant improvement in profitability in the latest period compared to previous years.

Net Sales (US$ in thousands)

Net sales showed variability but an overall upward trend. Sales increased steadily from 9,538,797 thousand in 2017 to 11,821,839 thousand in 2018, then declined in 2019 and 2020. In 2021, net sales surged considerably, reaching 18,408,850 thousand, the highest value in the timeframe, indicating strong revenue growth.

Reported Net Profit Margin (%)

The reported net profit margin generally moved in parallel to net income trends. It peaked at 10.64% in 2018, decreased over the next two years down to 5.74% in 2020, before rising sharply to 17.46% in 2021. This suggests improvements in profitability relative to sales, particularly in the most recent year.

Adjusted Net Income (US$ in thousands)

Adjusted net income followed a comparable pattern to reported net income, with an increase from 666,471 thousand in 2017 to 1,317,808 thousand in 2018, a decrease during 2019 and 2020, and a significant increase to 3,559,390 thousand in 2021. The adjusted figures underscore the notable profitability rebound after a period of decline.

Adjusted Net Profit Margin (%)

This margin rose from 6.99% in 2017 to 11.15% in 2018, declined modestly in 2019 and 2020, and then increased substantially to 19.34% in 2021. The elevated adjusted net profit margin in the final year reflects improved operational efficiency or favorable market conditions supporting higher profitability.

Overall, the data exhibits a strong recovery and growth in financial performance in 2021 following a dip in earnings and profitability in the prior two years. The sharp increases in net income, sales, and margins in 2021 indicate enhanced financial health and operational success in that period.

The financial data over the five-year period reveals several notable trends in profitability and equity performance.

Net Income and Adjusted Net Income

Net income attributable to the company exhibited significant fluctuations. There was a marked increase from 812,741 thousand USD in 2017 to a peak of 1,258,379 thousand USD in 2018, followed by a steep decline in 2019 and 2020, reaching 550,822 thousand USD. However, in 2021, net income surged dramatically to 3,214,066 thousand USD. The adjusted net income generally follows a similar pattern, indicating the adjustments did not materially alter the trend but slightly smoothed the fluctuations.

Equity and Adjusted Equity

Total equity demonstrates a consistent upward trajectory, growing from 3,351,574 thousand USD in 2017 to 6,304,641 thousand USD in 2021. Adjusted total equity, which presumably accounts for specific adjustments, is consistently higher than reported equity each year and also shows steady growth from 3,627,293 thousand USD in 2017 to 7,181,237 thousand USD in 2021. This indicates a firm expansion in the company's equity base over the period under review.

Return on Equity (ROE) and Adjusted ROE

Reported ROE peaked in 2018 at 31.98%, followed by a pronounced decline to 12.68% in 2020. A strong recovery occurred in 2021, with ROE climbing significantly to 50.98%. Adjusted ROE closely mirrors this trend, peaking at 30.36% in 2018, falling to 12.68% in 2020, and rising to 49.57% in 2021. This pattern aligns with the net income fluctuations, indicating that profitability relative to equity was highly variable during the timeframe but ended on a strong note in 2021.

Insights and Overall Trends

The company's financial performance displays periods of volatility, especially in net income and ROE. The sharp decline from 2018 through 2020 could suggest operational or market challenges, while the substantial rebound in 2021 signifies a robust recovery or unusual one-time gains. The consistent increase in equity suggests ongoing capital strengthening, which contributes positively to the company’s financial stability. Adjusted figures confirm that underlying trends remain consistent when accounting for potential non-recurring items or accounting adjustments. Overall, the data indicate strong financial resilience with significant improvement in profitability metrics by the end of the observed period.

The financial data exhibits notable fluctuations and growth across the analyzed periods.

Net Income and Adjusted Net Income

Net income attributable to the company shows an overall volatile trend. After a significant increase from 812,741 thousand USD in 2017 to 1,258,379 thousand USD in 2018, it declined sharply to 671,103 thousand USD in 2019 and continued to decrease in 2020 to 550,822 thousand USD. However, a remarkable recovery is observed in 2021 with net income rising substantially to 3,214,066 thousand USD. Adjusted net income follows a similar pattern, increasing between 2017 and 2018, dipping in the following two years, and then surging in 2021, reaching 3,559,390 thousand USD. The adjusted figures consistently exceed the reported net income, suggesting adjustments yield a more favorable profitability perspective.

Total Assets and Adjusted Total Assets

Total assets steadily increased each year from 6,855,732 thousand USD in 2017 to 12,531,234 thousand USD in 2021, indicating consistent asset growth and expansion. Adjusted total assets mirror this growth trend, remaining slightly higher in each corresponding year compared to the reported total assets, which reflects adjustments in the asset base that marginally increase the asset valuation.

Return on Assets (ROA)

The reported ROA experienced significant variability. It improved from 11.85% in 2017 to a peak of 16.34% in 2018, then decreased to 8.11% in 2019 and further to 5.94% in 2020. In 2021, it surged dramatically to 25.65%, representing a strong improvement in asset profitability. The adjusted ROA shows a similar trajectory but with consistently higher values than the reported ROA, ranging from 9.63% in 2017 to an outstanding 28.39% in 2021. This suggests that when adjustments are considered, the company demonstrates a higher efficiency in generating profit from its asset base, particularly in the latest period.

Overall, the financial data reflects a period of fluctuating profitability with a pronounced downturn in 2019 and 2020 followed by strong recovery in 2021. Asset growth is steady and continuous, supporting the company’s expansion. The adjusted figures indicate that underlying profitability and asset efficiency might be stronger than reported metrics suggest, particularly highlighting an exceptional performance in the most recent fiscal year.