Stock Analysis on Net
Stock Analysis on Net

Steel Dynamics Inc. (NASDAQ:STLD)

This company has been moved to the archive! The financial data has not been updated since October 26, 2022.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Steel Dynamics Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2022 54.17% = 30.74% × 1.76
Jun 30, 2022 57.91% = 32.05% × 1.81
Mar 31, 2022 55.82% = 29.77% × 1.87
Dec 31, 2021 50.98% = 25.65% × 1.99
Sep 30, 2021 41.22% = 20.04% × 2.06
Jun 30, 2021 28.30% = 13.29% × 2.13
Mar 31, 2021 16.79% = 7.84% × 2.14
Dec 31, 2020 12.68% = 5.94% × 2.13
Sep 30, 2020 11.53% = 5.62% × 2.05
Jun 30, 2020 12.91% = 6.32% × 2.04
Mar 31, 2020 15.90% = 7.84% × 2.03
Dec 31, 2019 16.47% = 8.11% × 2.03
Sep 30, 2019 20.21% = 10.32% × 1.96
Jun 30, 2019 26.25% = 13.58% × 1.93
Mar 31, 2019 30.82% = 15.72% × 1.96
Dec 31, 2018 31.98% = 16.34% × 1.96
Sep 30, 2018 32.06% = 16.58% × 1.93
Jun 30, 2018 27.97% = 13.96% × 2.00
Mar 31, 2018 24.19% = 12.04% × 2.01
Dec 31, 2017 24.25% = 11.85% × 2.05
Sep 30, 2017 — = — × 2.24
Jun 30, 2017 — = — × 2.16
Mar 31, 2017 — = — × 2.21

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2022 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Steel Dynamics Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2022 54.17% = 18.99% × 1.62 × 1.76
Jun 30, 2022 57.91% = 19.81% × 1.62 × 1.81
Mar 31, 2022 55.82% = 19.02% × 1.57 × 1.87
Dec 31, 2021 50.98% = 17.46% × 1.47 × 1.99
Sep 30, 2021 41.22% = 14.72% × 1.36 × 2.06
Jun 30, 2021 28.30% = 10.98% × 1.21 × 2.13
Mar 31, 2021 16.79% = 7.51% × 1.04 × 2.14
Dec 31, 2020 12.68% = 5.74% × 1.04 × 2.13
Sep 30, 2020 11.53% = 5.18% × 1.09 × 2.05
Jun 30, 2020 12.91% = 5.61% × 1.13 × 2.04
Mar 31, 2020 15.90% = 6.40% × 1.23 × 2.03
Dec 31, 2019 16.47% = 6.41% × 1.26 × 2.03
Sep 30, 2019 20.21% = 7.44% × 1.39 × 1.96
Jun 30, 2019 26.25% = 9.11% × 1.49 × 1.93
Mar 31, 2019 30.82% = 10.26% × 1.53 × 1.96
Dec 31, 2018 31.98% = 10.64% × 1.53 × 1.96
Sep 30, 2018 32.06% = 11.49% × 1.44 × 1.93
Jun 30, 2018 27.97% = 10.01% × 1.40 × 2.00
Mar 31, 2018 24.19% = 8.59% × 1.40 × 2.01
Dec 31, 2017 24.25% = 8.52% × 1.39 × 2.05
Sep 30, 2017 — = — × — × 2.24
Jun 30, 2017 — = — × — × 2.16
Mar 31, 2017 — = — × — × 2.21

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2022 is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Steel Dynamics Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2022 54.17% = 0.76 × 0.99 × 25.21% × 1.62 × 1.76
Jun 30, 2022 57.91% = 0.77 × 0.99 × 26.19% × 1.62 × 1.81
Mar 31, 2022 55.82% = 0.77 × 0.99 × 25.10% × 1.57 × 1.87
Dec 31, 2021 50.98% = 0.77 × 0.99 × 23.00% × 1.47 × 1.99
Sep 30, 2021 41.22% = 0.77 × 0.98 × 19.42% × 1.36 × 2.06
Jun 30, 2021 28.30% = 0.78 × 0.96 × 14.62% × 1.21 × 2.13
Mar 31, 2021 16.79% = 0.79 × 0.92 × 10.25% × 1.04 × 2.14
Dec 31, 2020 12.68% = 0.80 × 0.88 × 8.13% × 1.04 × 2.13
Sep 30, 2020 11.53% = 0.78 × 0.85 × 7.79% × 1.09 × 2.05
Jun 30, 2020 12.91% = 0.77 × 0.85 × 8.50% × 1.13 × 2.04
Mar 31, 2020 15.90% = 0.77 × 0.87 × 9.50% × 1.23 × 2.03
Dec 31, 2019 16.47% = 0.77 × 0.87 × 9.51% × 1.26 × 2.03
Sep 30, 2019 20.21% = 0.77 × 0.89 × 10.79% × 1.39 × 1.96
Jun 30, 2019 26.25% = 0.78 × 0.92 × 12.78% × 1.49 × 1.93
Mar 31, 2019 30.82% = 0.78 × 0.93 × 14.26% × 1.53 × 1.96
Dec 31, 2018 31.98% = 0.78 × 0.93 × 14.79% × 1.53 × 1.96
Sep 30, 2018 32.06% = 0.90 × 0.92 × 13.96% × 1.44 × 1.93
Jun 30, 2018 27.97% = 0.89 × 0.90 × 12.44% × 1.40 × 2.00
Mar 31, 2018 24.19% = 0.90 × 0.88 × 10.91% × 1.40 × 2.01
Dec 31, 2017 24.25% = 0.86 × 0.88 × 11.29% × 1.39 × 2.05
Sep 30, 2017 — = — × — × — × — × 2.24
Jun 30, 2017 — = — × — × — × — × 2.16
Mar 31, 2017 — = — × — × — × — × 2.21

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2022 is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Steel Dynamics Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2022 30.74% = 18.99% × 1.62
Jun 30, 2022 32.05% = 19.81% × 1.62
Mar 31, 2022 29.77% = 19.02% × 1.57
Dec 31, 2021 25.65% = 17.46% × 1.47
Sep 30, 2021 20.04% = 14.72% × 1.36
Jun 30, 2021 13.29% = 10.98% × 1.21
Mar 31, 2021 7.84% = 7.51% × 1.04
Dec 31, 2020 5.94% = 5.74% × 1.04
Sep 30, 2020 5.62% = 5.18% × 1.09
Jun 30, 2020 6.32% = 5.61% × 1.13
Mar 31, 2020 7.84% = 6.40% × 1.23
Dec 31, 2019 8.11% = 6.41% × 1.26
Sep 30, 2019 10.32% = 7.44% × 1.39
Jun 30, 2019 13.58% = 9.11% × 1.49
Mar 31, 2019 15.72% = 10.26% × 1.53
Dec 31, 2018 16.34% = 10.64% × 1.53
Sep 30, 2018 16.58% = 11.49% × 1.44
Jun 30, 2018 13.96% = 10.01% × 1.40
Mar 31, 2018 12.04% = 8.59% × 1.40
Dec 31, 2017 11.85% = 8.52% × 1.39
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2022 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Steel Dynamics Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2022 30.74% = 0.76 × 0.99 × 25.21% × 1.62
Jun 30, 2022 32.05% = 0.77 × 0.99 × 26.19% × 1.62
Mar 31, 2022 29.77% = 0.77 × 0.99 × 25.10% × 1.57
Dec 31, 2021 25.65% = 0.77 × 0.99 × 23.00% × 1.47
Sep 30, 2021 20.04% = 0.77 × 0.98 × 19.42% × 1.36
Jun 30, 2021 13.29% = 0.78 × 0.96 × 14.62% × 1.21
Mar 31, 2021 7.84% = 0.79 × 0.92 × 10.25% × 1.04
Dec 31, 2020 5.94% = 0.80 × 0.88 × 8.13% × 1.04
Sep 30, 2020 5.62% = 0.78 × 0.85 × 7.79% × 1.09
Jun 30, 2020 6.32% = 0.77 × 0.85 × 8.50% × 1.13
Mar 31, 2020 7.84% = 0.77 × 0.87 × 9.50% × 1.23
Dec 31, 2019 8.11% = 0.77 × 0.87 × 9.51% × 1.26
Sep 30, 2019 10.32% = 0.77 × 0.89 × 10.79% × 1.39
Jun 30, 2019 13.58% = 0.78 × 0.92 × 12.78% × 1.49
Mar 31, 2019 15.72% = 0.78 × 0.93 × 14.26% × 1.53
Dec 31, 2018 16.34% = 0.78 × 0.93 × 14.79% × 1.53
Sep 30, 2018 16.58% = 0.90 × 0.92 × 13.96% × 1.44
Jun 30, 2018 13.96% = 0.89 × 0.90 × 12.44% × 1.40
Mar 31, 2018 12.04% = 0.90 × 0.88 × 10.91% × 1.40
Dec 31, 2017 11.85% = 0.86 × 0.88 × 11.29% × 1.39
Sep 30, 2017 — = — × — × — × —
Jun 30, 2017 — = — × — × — × —
Mar 31, 2017 — = — × — × — × —

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2022 is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Steel Dynamics Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2022 18.99% = 0.76 × 0.99 × 25.21%
Jun 30, 2022 19.81% = 0.77 × 0.99 × 26.19%
Mar 31, 2022 19.02% = 0.77 × 0.99 × 25.10%
Dec 31, 2021 17.46% = 0.77 × 0.99 × 23.00%
Sep 30, 2021 14.72% = 0.77 × 0.98 × 19.42%
Jun 30, 2021 10.98% = 0.78 × 0.96 × 14.62%
Mar 31, 2021 7.51% = 0.79 × 0.92 × 10.25%
Dec 31, 2020 5.74% = 0.80 × 0.88 × 8.13%
Sep 30, 2020 5.18% = 0.78 × 0.85 × 7.79%
Jun 30, 2020 5.61% = 0.77 × 0.85 × 8.50%
Mar 31, 2020 6.40% = 0.77 × 0.87 × 9.50%
Dec 31, 2019 6.41% = 0.77 × 0.87 × 9.51%
Sep 30, 2019 7.44% = 0.77 × 0.89 × 10.79%
Jun 30, 2019 9.11% = 0.78 × 0.92 × 12.78%
Mar 31, 2019 10.26% = 0.78 × 0.93 × 14.26%
Dec 31, 2018 10.64% = 0.78 × 0.93 × 14.79%
Sep 30, 2018 11.49% = 0.90 × 0.92 × 13.96%
Jun 30, 2018 10.01% = 0.89 × 0.90 × 12.44%
Mar 31, 2018 8.59% = 0.90 × 0.88 × 10.91%
Dec 31, 2017 8.52% = 0.86 × 0.88 × 11.29%
Sep 30, 2017 — = — × — × —
Jun 30, 2017 — = — × — × —
Mar 31, 2017 — = — × — × —

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in net profit margin ratio over Q3 2022 is the decrease in operating profitability measured by EBIT margin ratio.