Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Steel Dynamics Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 3.10 | 3.38 | 4.22 | 3.96 | 4.04 | |
| Quick ratio | 1.42 | 1.86 | 2.47 | 2.06 | 2.18 | |
| Cash ratio | 0.56 | 1.09 | 1.63 | 1.04 | 1.18 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Steel Dynamics Inc. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Steel Dynamics Inc. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Steel Dynamics Inc. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Current Ratio
Steel Dynamics Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 6,901,023) | 4,258,447) | 4,253,025) | 4,032,657) | 3,508,342) | |
| Current liabilities | 2,227,369) | 1,258,787) | 1,006,698) | 1,019,137) | 868,519) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 3.10 | 3.38 | 4.22 | 3.96 | 4.04 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 2.52 | 2.72 | 2.47 | — | — | |
| Newmont Corp. | 2.90 | 2.52 | 2.63 | — | — | |
| Current Ratio, Sector | ||||||
| Metals & Mining | 2.64 | 2.62 | 2.54 | — | — | |
| Current Ratio, Industry | ||||||
| Materials | 1.47 | 1.40 | 1.38 | — | — | |
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).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,901,023 ÷ 2,227,369 = 3.10
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Steel Dynamics Inc. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Quick Ratio
Steel Dynamics Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and equivalents | 1,243,868) | 1,368,618) | 1,381,460) | 828,220) | 1,028,649) | |
| Short-term investments | —) | —) | 262,174) | 228,783) | —) | |
| Accounts receivable, unrelated parties | 1,911,385) | 967,981) | 841,378) | 1,040,220) | 846,415) | |
| Accounts receivable, related parties | 5,049) | 3,937) | 2,958) | 3,536) | 22,422) | |
| Total quick assets | 3,160,302) | 2,340,536) | 2,487,970) | 2,100,759) | 1,897,486) | |
| Current liabilities | 2,227,369) | 1,258,787) | 1,006,698) | 1,019,137) | 868,519) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.42 | 1.86 | 2.47 | 2.06 | 2.18 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 1.66 | 1.48 | 0.99 | — | — | |
| Newmont Corp. | 2.04 | 1.86 | 1.20 | — | — | |
| Quick Ratio, Sector | ||||||
| Metals & Mining | 1.78 | 1.67 | 1.08 | — | — | |
| Quick Ratio, Industry | ||||||
| Materials | 1.02 | 0.95 | 0.76 | — | — | |
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).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,160,302 ÷ 2,227,369 = 1.42
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Steel Dynamics Inc. quick ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Cash Ratio
Steel Dynamics Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and equivalents | 1,243,868) | 1,368,618) | 1,381,460) | 828,220) | 1,028,649) | |
| Short-term investments | —) | —) | 262,174) | 228,783) | —) | |
| Total cash assets | 1,243,868) | 1,368,618) | 1,643,634) | 1,057,003) | 1,028,649) | |
| Current liabilities | 2,227,369) | 1,258,787) | 1,006,698) | 1,019,137) | 868,519) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.56 | 1.09 | 1.63 | 1.04 | 1.18 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 1.37 | 1.07 | 0.63 | — | — | |
| Newmont Corp. | 1.91 | 1.73 | 1.04 | — | — | |
| Cash Ratio, Sector | ||||||
| Metals & Mining | 1.54 | 1.40 | 0.80 | — | — | |
| Cash Ratio, Industry | ||||||
| Materials | 0.72 | 0.65 | 0.41 | — | — | |
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).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,243,868 ÷ 2,227,369 = 0.56
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Steel Dynamics Inc. cash ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |