Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Steel Dynamics Inc., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Steel Dynamics Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Steel Dynamics Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Steel Dynamics Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Steel Dynamics Inc. equity turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Fixed Asset Turnover
Steel Dynamics Inc., net fixed asset turnover 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) | ||||||
| Net sales | 18,408,850) | 9,601,482) | 10,464,991) | 11,821,839) | 9,538,797) | |
| Property, plant and equipment, net | 4,751,430) | 4,105,569) | 3,135,886) | 2,945,767) | 2,675,904) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 3.87 | 2.34 | 3.34 | 4.01 | 3.56 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.76 | 0.48 | 0.49 | — | — | |
| Newmont Corp. | 0.51 | 0.47 | 0.39 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Metals & Mining | 0.65 | 0.48 | 0.44 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Materials | 0.82 | 0.64 | 0.63 | — | — | |
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 18,408,850 ÷ 4,751,430 = 3.87
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Steel Dynamics Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Steel Dynamics Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Net sales | 18,408,850) | 9,601,482) | 10,464,991) | 11,821,839) | 9,538,797) | |
| Property, plant and equipment, net | 4,751,430) | 4,105,569) | 3,135,886) | 2,945,767) | 2,675,904) | |
| Right-of-use assets under operating leases (included in Other assets, noncurrent) | 100,124) | 90,280) | 75,176) | —) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 4,851,554) | 4,195,849) | 3,211,062) | 2,945,767) | 2,675,904) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.79 | 2.29 | 3.26 | 4.01 | 3.56 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.75 | 0.48 | 0.49 | — | — | |
| Newmont Corp. | 0.50 | 0.47 | 0.38 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Metals & Mining | 0.64 | 0.47 | 0.44 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Materials | 0.81 | 0.63 | 0.62 | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 18,408,850 ÷ 4,851,554 = 3.79
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Steel Dynamics Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Total Asset Turnover
Steel Dynamics Inc., total asset turnover 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) | ||||||
| Net sales | 18,408,850) | 9,601,482) | 10,464,991) | 11,821,839) | 9,538,797) | |
| Total assets | 12,531,234) | 9,265,562) | 8,275,765) | 7,703,563) | 6,855,732) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.47 | 1.04 | 1.26 | 1.53 | 1.39 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.48 | 0.34 | 0.35 | — | — | |
| Newmont Corp. | 0.30 | 0.28 | 0.24 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Metals & Mining | 0.40 | 0.31 | 0.30 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Materials | 0.39 | 0.31 | 0.31 | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 18,408,850 ÷ 12,531,234 = 1.47
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Steel Dynamics Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Equity Turnover
Steel Dynamics Inc., equity turnover 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) | ||||||
| Net sales | 18,408,850) | 9,601,482) | 10,464,991) | 11,821,839) | 9,538,797) | |
| Total Steel Dynamics, Inc. equity | 6,304,641) | 4,345,164) | 4,075,834) | 3,935,071) | 3,351,574) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.92 | 2.21 | 2.57 | 3.00 | 2.85 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 1.63 | 1.40 | 1.55 | — | — | |
| Newmont Corp. | 0.55 | 0.50 | 0.45 | — | — | |
| Equity Turnover, Sector | ||||||
| Metals & Mining | 0.97 | 0.77 | 0.79 | — | — | |
| Equity Turnover, Industry | ||||||
| Materials | 0.82 | 0.66 | 0.66 | — | — | |
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
Equity turnover = Net sales ÷ Total Steel Dynamics, Inc. equity
= 18,408,850 ÷ 6,304,641 = 2.92
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Steel Dynamics Inc. equity turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |