Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Steel Dynamics Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Steel Dynamics Inc. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Steel Dynamics Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Steel Dynamics Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Steel Dynamics Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Steel Dynamics Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Gross Profit Margin
Steel Dynamics Inc., gross profit margin 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) | ||||||
| Gross profit | 5,362,424) | 1,434,728) | 1,530,984) | 2,322,814) | 1,582,014) | |
| Net sales | 18,408,850) | 9,601,482) | 10,464,991) | 11,821,839) | 9,538,797) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 29.13% | 14.94% | 14.63% | 19.65% | 16.59% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 38.59% | 17.91% | 9.01% | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 5,362,424 ÷ 18,408,850 = 29.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Steel Dynamics Inc. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021. |
Operating Profit Margin
Steel Dynamics Inc., operating profit margin 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) | ||||||
| Operating income | 4,301,105) | 847,142) | 986,880) | 1,722,409) | 1,066,881) | |
| Net sales | 18,408,850) | 9,601,482) | 10,464,991) | 11,821,839) | 9,538,797) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 23.36% | 8.82% | 9.43% | 14.57% | 11.18% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 36.62% | 17.16% | 7.58% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Materials | 24.89% | 13.90% | 9.44% | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 4,301,105 ÷ 18,408,850 = 23.36%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Steel Dynamics Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Net Profit Margin
Steel Dynamics Inc., net profit margin 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) | |
| Net sales | 18,408,850) | 9,601,482) | 10,464,991) | 11,821,839) | 9,538,797) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 17.46% | 5.74% | 6.41% | 10.64% | 8.52% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 18.85% | 4.22% | -1.66% | — | — | |
| Net Profit Margin, Industry | ||||||
| Materials | 15.16% | 7.48% | 4.80% | — | — | |
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 profit margin = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Net sales
= 100 × 3,214,066 ÷ 18,408,850 = 17.46%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Steel Dynamics Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Equity (ROE)
Steel Dynamics Inc., ROE 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) | |
| Total Steel Dynamics, Inc. equity | 6,304,641) | 4,345,164) | 4,075,834) | 3,935,071) | 3,351,574) | |
| Profitability Ratio | ||||||
| ROE1 | 50.98% | 12.68% | 16.47% | 31.98% | 24.25% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 30.80% | 5.89% | -2.57% | — | — | |
| ROE, Industry | ||||||
| Materials | 14.02% | 5.39% | 3.51% | — | — | |
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
ROE = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Total Steel Dynamics, Inc. equity
= 100 × 3,214,066 ÷ 6,304,641 = 50.98%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Steel Dynamics Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Return on Assets (ROA)
Steel Dynamics Inc., ROA 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) | |
| Total assets | 12,531,234) | 9,265,562) | 8,275,765) | 7,703,563) | 6,855,732) | |
| Profitability Ratio | ||||||
| ROA1 | 25.65% | 5.94% | 8.11% | 16.34% | 11.85% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Freeport-McMoRan Inc. | 8.97% | 1.42% | -0.59% | — | — | |
| ROA, Industry | ||||||
| Materials | 6.27% | 2.38% | 1.61% | — | — | |
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
ROA = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Total assets
= 100 × 3,214,066 ÷ 12,531,234 = 25.65%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Steel Dynamics Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |