Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Steel Dynamics Inc., long-term (investment) activity ratios (quarterly data)
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 financial ratios indicate distinct trends in asset and equity utilization over the analyzed periods.
- Net Fixed Asset Turnover
- The ratio starts at around 3.56 in the first provided full quarter and generally increases until reaching a peak slightly above 4.1 in mid-2019. Following this peak, there is a pronounced decline reaching a low point near 2.34 by the end of 2020. Subsequently, the ratio demonstrates a recovery trend, rising steadily through 2021 and into 2022, achieving values exceeding 4.5 before slightly declining again. This pattern suggests cyclical fluctuations in how efficiently fixed assets are used to generate revenue, with periods of both decreasing and improving asset productivity.
- Total Asset Turnover
- This ratio shows more moderate movement. It begins close to 1.39 and experiences a gradual increase through late 2018 and early 2019, peaking near 1.53. After this peak, there is a decline around 1.04 observed from late 2019 to early 2021, indicating reduced efficiency in total asset utilization during this timeframe. Following this dip, total asset turnover improves steadily, reaching about 1.62 by late 2022. The data reflects a somewhat smoother, less volatile trend compared to net fixed asset turnover.
- Equity Turnover
- The equity turnover ratio starts at approximately 2.85 and experiences a slight decline through the first few quarters, dropping to around 2.21 by late 2020. After this period, there is a progressive increase to about 2.93 before a minor decrease towards the end of the data window. This pattern indicates moderate fluctuation in how effectively equity is employed to generate sales, with a general recovery evident in the last several periods.
Overall, the data reveals that asset turnover ratios exhibited notable cyclicality, with a downward trend during the 2019-2020 period followed by significant improvement through 2021 and 2022. Equity turnover follows a similar but less volatile trajectory, indicating gradual shifts in operational efficiency and equity utilization over time. The recovery in these ratios after 2020 suggests a strengthening in asset and equity use to generate revenues post-decline.
Net Fixed Asset Turnover
Steel Dynamics Inc., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||||||||
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).
1 Q3 2022 Calculation
Net fixed asset turnover
= (Net salesQ3 2022
+ Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales exhibit notable fluctuations across the periods analyzed. Starting at approximately 2,368 million USD in the first quarter of 2017, sales experienced a gradual increase, peaking near 3,223 million USD in the third quarter of 2018. This was followed by a decline through the end of 2019, reaching around 2,350 million USD in the last quarter of that year. In 2020, net sales initially dropped to about 2,094 million USD in the second quarter but rebounded steadily thereafter. A significant upward trend is observed from 2021 onward, culminating at roughly 6,213 million USD in the second quarter of 2022, indicating substantial growth in revenue in the most recent periods.
- Property, Plant, and Equipment (PP&E), Net
- The net value of property, plant, and equipment shows a consistent upward trajectory over the timeframe. Beginning at approximately 2,760 million USD in the first quarter of 2017, the figure gradually increases almost every quarter. Notable rises are evident around mid-2020, moving from roughly 3,327 million USD to over 4,106 million USD by the fourth quarter of 2020. This upward momentum continues progressively, reaching nearly 5,147 million USD by the third quarter of 2022. The steady increase suggests ongoing investments in fixed assets or capital expansion during the period under review.
- Net Fixed Asset Turnover Ratio
- This ratio, which measures efficiency in using net fixed assets to generate sales, reveals an oscillating pattern with a general downward tendency from 2017 to 2020, followed by considerable improvement thereafter. Starting at 3.56 in the last quarter of 2017, the ratio peaked near 4.10 in mid-2019 before declining markedly to a low near 2.34 by the end of 2020. From 2021 onwards, the ratio climbs steadily, rising to approximately 4.54 in the third quarter of 2022, reflecting enhanced efficiency in asset utilization concomitant with the increased sales seen in the same periods.
- Summary of Observations
- The data indicates a cycle of growth, contraction, and recovery through the observed quarters. The initial period up to 2018 shows rising sales and stable asset base growth, followed by a dip in sales until 2020 while assets steadily increased. Post-2020, there is robust recovery in sales accompanied by continued asset expansion, resulting in improved asset turnover efficiency. This pattern suggests effective management of capital investments alongside revitalized market demand or operational improvements leading to higher productivity and revenue generation.
Total Asset Turnover
Steel Dynamics Inc., total asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||||||||
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).
1 Q3 2022 Calculation
Total asset turnover
= (Net salesQ3 2022
+ Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the examined quarters, highlighting performance dynamics and changes in operational efficiency.
- Net Sales
- Net sales presented a generally upward trajectory throughout the period. Initially, sales fluctuated around the 2.3 million to 2.9 million USD range between 2017 and 2018, with a peak near 3.2 million USD in late 2018. In 2019, there was a noticeable decline, with values dropping closer to the 2.3 to 2.8 million USD mark. This downward movement was reversed starting in 2020, when sales began to steadily climb, accelerating significantly in 2021 and 2022. The highest value was recorded in mid-2022, exceeding 6.2 million USD, indicating strong growth and expanding revenues.
- Total Assets
- Total assets showed consistent growth over the entire period, moving from approximately 6.7 billion USD to over 14 billion USD by late 2022. The asset base expanded steadily, with no significant declines observed. This growth in assets aligns with the periods of increasing sales, especially notable from 2020 onward, suggesting continued investment and accumulation of resources to support operational scaling and expansion.
- Total Asset Turnover
- Total asset turnover, calculated as net sales divided by total assets, exhibited notable fluctuations. Beginning near 1.39 in early 2017, it increased to a peak of approximately 1.57 in late 2018, indicating improved efficiency in generating sales from the asset base. However, from 2019 through much of 2020, turnover declined progressively, falling to around 1.04, suggesting decreased efficiency or underutilization of assets during this period. Starting in 2021, turnover ratios recovered strongly, rising back to about 1.62 by mid-2022, surpassing previous peaks. This rebound reflects enhanced asset utilization coinciding with rising sales, demonstrating operational improvements and better asset management.
In summary, the company experienced steady asset growth and fluctuating sales with a substantial increase in recent years. Asset efficiency, measured by total asset turnover, followed a U-shaped pattern: initial improvement, then decline, followed by significant recovery. The recent strong sales growth combined with rising asset turnover suggests a period of strengthened operational performance and effective leverage of resources.
Equity Turnover
Steel Dynamics Inc., equity turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Total Steel Dynamics, Inc. equity | ||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||||||||
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).
1 Q3 2022 Calculation
Equity turnover
= (Net salesQ3 2022
+ Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021)
÷ Total Steel Dynamics, Inc. equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales exhibited a generally upward trend over the analyzed periods, beginning at approximately $2.37 billion in March 2017 and increasing to around $5.65 billion by March 2022. An initial moderate growth phase is noticeable until December 2017, after which sales increased significantly, particularly from March 2021 onward where a sharp rise occurs, reaching a peak of approximately $6.21 billion in June 2022 before slightly declining to about $5.65 billion in September 2022. Short-term fluctuations are also present, including a dip during the middle of 2020.
- Total Equity Dynamics
- The total equity of the company steadily increased throughout the period under review. Starting from approximately $3.04 billion in March 2017, equity grew consistently to reach nearly $7.97 billion by September 2022. The growth pace appears relatively stable, with no marked declines, reflecting ongoing capital accumulation or profitability retention. A notable acceleration in equity growth is perceptible from early 2021 onwards, aligning with the period of significant increase in net sales.
- Equity Turnover Ratio Patterns
- The equity turnover ratio, available from September 2017 onward, shows a declining trend from an initial value around 2.85 down to a low near 2.21 in December 2020. Starting in 2021, the ratio begins to recover, trending upward to approximately 2.92 by September 2021, stabilizing near this level through mid-2022. This pattern indicates an initial decrease in sales generated per unit of equity, followed by recovery and improved utilization of equity in generating sales during the later periods.
- Insights and Observations
- The data suggests substantial growth in net sales and equity over the five-year span, with a phase of consolidation and temporary decline during 2020, coinciding with global economic challenges. The equity turnover ratio's dip and subsequent rise parallel these patterns, hinting at changes in operational efficiency or capital structure utilization. Overall, the company demonstrates strong expansion in sales and capital base, with improving efficiency metrics in the most recent years.