Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Steel Dynamics Inc., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Steel Dynamics Inc. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Steel Dynamics Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Steel Dynamics Inc. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Steel Dynamics Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Steel Dynamics Inc. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Steel Dynamics Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Steel Dynamics Inc. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Steel Dynamics Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Steel Dynamics Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
Steel Dynamics Inc., debt to equity 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 maturities of long-term debt | 97,174) | 86,894) | 89,356) | 24,234) | 28,795) | |
| Long-term debt, excluding current maturities | 3,008,702) | 3,015,782) | 2,644,988) | 2,352,489) | 2,353,145) | |
| Total debt | 3,105,876) | 3,102,676) | 2,734,344) | 2,376,723) | 2,381,940) | |
| Total Steel Dynamics, Inc. equity | 6,304,641) | 4,345,164) | 4,075,834) | 3,935,071) | 3,351,574) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.49 | 0.71 | 0.67 | 0.60 | 0.71 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.68 | 0.95 | 1.06 | — | — | |
| Debt to Equity, Industry | ||||||
| Materials | 0.41 | 0.45 | 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
Debt to equity = Total debt ÷ Total Steel Dynamics, Inc. equity
= 3,105,876 ÷ 6,304,641 = 0.49
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Steel Dynamics Inc. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Equity (including Operating Lease Liability)
Steel Dynamics Inc., debt to equity (including operating lease liability) 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 maturities of long-term debt | 97,174) | 86,894) | 89,356) | 24,234) | 28,795) | |
| Long-term debt, excluding current maturities | 3,008,702) | 3,015,782) | 2,644,988) | 2,352,489) | 2,353,145) | |
| Total debt | 3,105,876) | 3,102,676) | 2,734,344) | 2,376,723) | 2,381,940) | |
| Lease obligations under operating leases (included in Accrued liabilities) | 17,822) | 17,702) | 17,532) | —) | —) | |
| Lease obligations under operating leases (included in Other liabilities, noncurrent) | 82,252) | 72,614) | 57,897) | —) | —) | |
| Total debt (including operating lease liability) | 3,205,950) | 3,192,992) | 2,809,773) | 2,376,723) | 2,381,940) | |
| Total Steel Dynamics, Inc. equity | 6,304,641) | 4,345,164) | 4,075,834) | 3,935,071) | 3,351,574) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.51 | 0.73 | 0.69 | 0.60 | 0.71 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.70 | 0.98 | 1.08 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Materials | 0.43 | 0.47 | 0.43 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Steel Dynamics, Inc. equity
= 3,205,950 ÷ 6,304,641 = 0.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Steel Dynamics Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital
Steel Dynamics Inc., debt to capital 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 maturities of long-term debt | 97,174) | 86,894) | 89,356) | 24,234) | 28,795) | |
| Long-term debt, excluding current maturities | 3,008,702) | 3,015,782) | 2,644,988) | 2,352,489) | 2,353,145) | |
| Total debt | 3,105,876) | 3,102,676) | 2,734,344) | 2,376,723) | 2,381,940) | |
| Total Steel Dynamics, Inc. equity | 6,304,641) | 4,345,164) | 4,075,834) | 3,935,071) | 3,351,574) | |
| Total capital | 9,410,517) | 7,447,840) | 6,810,178) | 6,311,794) | 5,733,514) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.33 | 0.42 | 0.40 | 0.38 | 0.42 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.40 | 0.49 | 0.51 | — | — | |
| Debt to Capital, Industry | ||||||
| Materials | 0.29 | 0.31 | 0.29 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 3,105,876 ÷ 9,410,517 = 0.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Steel Dynamics Inc. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital (including Operating Lease Liability)
Steel Dynamics Inc., debt to capital (including operating lease liability) 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 maturities of long-term debt | 97,174) | 86,894) | 89,356) | 24,234) | 28,795) | |
| Long-term debt, excluding current maturities | 3,008,702) | 3,015,782) | 2,644,988) | 2,352,489) | 2,353,145) | |
| Total debt | 3,105,876) | 3,102,676) | 2,734,344) | 2,376,723) | 2,381,940) | |
| Lease obligations under operating leases (included in Accrued liabilities) | 17,822) | 17,702) | 17,532) | —) | —) | |
| Lease obligations under operating leases (included in Other liabilities, noncurrent) | 82,252) | 72,614) | 57,897) | —) | —) | |
| Total debt (including operating lease liability) | 3,205,950) | 3,192,992) | 2,809,773) | 2,376,723) | 2,381,940) | |
| Total Steel Dynamics, Inc. equity | 6,304,641) | 4,345,164) | 4,075,834) | 3,935,071) | 3,351,574) | |
| Total capital (including operating lease liability) | 9,510,591) | 7,538,156) | 6,885,607) | 6,311,794) | 5,733,514) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.34 | 0.42 | 0.41 | 0.38 | 0.42 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.41 | 0.49 | 0.52 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Materials | 0.30 | 0.32 | 0.30 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 3,205,950 ÷ 9,510,591 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Steel Dynamics Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Assets
Steel Dynamics Inc., debt to assets 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 maturities of long-term debt | 97,174) | 86,894) | 89,356) | 24,234) | 28,795) | |
| Long-term debt, excluding current maturities | 3,008,702) | 3,015,782) | 2,644,988) | 2,352,489) | 2,353,145) | |
| Total debt | 3,105,876) | 3,102,676) | 2,734,344) | 2,376,723) | 2,381,940) | |
| Total assets | 12,531,234) | 9,265,562) | 8,275,765) | 7,703,563) | 6,855,732) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.25 | 0.33 | 0.33 | 0.31 | 0.35 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.20 | 0.23 | 0.24 | — | — | |
| Debt to Assets, Industry | ||||||
| Materials | 0.18 | 0.20 | 0.19 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 3,105,876 ÷ 12,531,234 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Steel Dynamics Inc. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Assets (including Operating Lease Liability)
Steel Dynamics Inc., debt to assets (including operating lease liability) 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 maturities of long-term debt | 97,174) | 86,894) | 89,356) | 24,234) | 28,795) | |
| Long-term debt, excluding current maturities | 3,008,702) | 3,015,782) | 2,644,988) | 2,352,489) | 2,353,145) | |
| Total debt | 3,105,876) | 3,102,676) | 2,734,344) | 2,376,723) | 2,381,940) | |
| Lease obligations under operating leases (included in Accrued liabilities) | 17,822) | 17,702) | 17,532) | —) | —) | |
| Lease obligations under operating leases (included in Other liabilities, noncurrent) | 82,252) | 72,614) | 57,897) | —) | —) | |
| Total debt (including operating lease liability) | 3,205,950) | 3,192,992) | 2,809,773) | 2,376,723) | 2,381,940) | |
| Total assets | 12,531,234) | 9,265,562) | 8,275,765) | 7,703,563) | 6,855,732) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.26 | 0.34 | 0.34 | 0.31 | 0.35 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Freeport-McMoRan Inc. | 0.20 | 0.24 | 0.25 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Materials | 0.19 | 0.21 | 0.20 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 3,205,950 ÷ 12,531,234 = 0.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Steel Dynamics Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Financial Leverage
Steel Dynamics Inc., financial leverage 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) | ||||||
| Total assets | 12,531,234) | 9,265,562) | 8,275,765) | 7,703,563) | 6,855,732) | |
| Total Steel Dynamics, Inc. equity | 6,304,641) | 4,345,164) | 4,075,834) | 3,935,071) | 3,351,574) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.99 | 2.13 | 2.03 | 1.96 | 2.05 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 3.44 | 4.14 | 4.39 | — | — | |
| Financial Leverage, Industry | ||||||
| Materials | 2.23 | 2.27 | 2.18 | — | — | |
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).
1 2021 Calculation
Financial leverage = Total assets ÷ Total Steel Dynamics, Inc. equity
= 12,531,234 ÷ 6,304,641 = 1.99
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Steel Dynamics Inc. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Interest Coverage
Steel Dynamics Inc., interest coverage 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 income attributable to Steel Dynamics, Inc. | 3,214,066) | 550,822) | 671,103) | 1,258,379) | 812,741) | |
| Add: Net income attributable to noncontrolling interest | 32,748) | 20,006) | 6,797) | (2,574) | (6,945) | |
| Add: Income tax expense | 962,256) | 134,650) | 197,437) | 363,969) | 129,439) | |
| Add: Interest expense, net of capitalized interest | 57,209) | 94,877) | 127,104) | 126,620) | 134,399) | |
| Earnings before interest and tax (EBIT) | 4,266,279) | 800,355) | 1,002,441) | 1,746,394) | 1,069,634) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 74.57 | 8.44 | 7.89 | 13.79 | 7.96 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 13.73 | 4.03 | 1.51 | — | — | |
| Interest Coverage, Industry | ||||||
| Materials | 18.92 | 7.87 | 5.36 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 4,266,279 ÷ 57,209 = 74.57
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Steel Dynamics Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
Steel Dynamics Inc., fixed charge coverage 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 income attributable to Steel Dynamics, Inc. | 3,214,066) | 550,822) | 671,103) | 1,258,379) | 812,741) | |
| Add: Net income attributable to noncontrolling interest | 32,748) | 20,006) | 6,797) | (2,574) | (6,945) | |
| Add: Income tax expense | 962,256) | 134,650) | 197,437) | 363,969) | 129,439) | |
| Add: Interest expense, net of capitalized interest | 57,209) | 94,877) | 127,104) | 126,620) | 134,399) | |
| Earnings before interest and tax (EBIT) | 4,266,279) | 800,355) | 1,002,441) | 1,746,394) | 1,069,634) | |
| Add: Operating lease expense | 22,500) | 21,300) | 20,100) | 21,100) | 18,900) | |
| Earnings before fixed charges and tax | 4,288,779) | 821,655) | 1,022,541) | 1,767,494) | 1,088,534) | |
| Interest expense, net of capitalized interest | 57,209) | 94,877) | 127,104) | 126,620) | 134,399) | |
| Operating lease expense | 22,500) | 21,300) | 20,100) | 21,100) | 18,900) | |
| Fixed charges | 79,709) | 116,177) | 147,204) | 147,720) | 153,299) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 53.81 | 7.07 | 6.95 | 11.97 | 7.10 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 11.86 | 3.53 | 1.42 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Materials | 12.30 | 5.31 | 3.65 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,288,779 ÷ 79,709 = 53.81
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Steel Dynamics Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |