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Steel DynamicsSTLD +1.43%88 Cash Ratio is 0.26 as of Mar. 2026, which is 74% below its 10-year median of 1.00. GuruFocus rates STLD with a GF Score™ of 88/100 and a GF Value™ of $158.87 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 615 Steel companies, Steel Dynamics ranks worse than 51.22% on this metric.
Steel Dynamics has a Cash Ratio of 0.26. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Steel Dynamics's Cash Ratio or its related term are showing as below:
STLD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.26 Med: 1 Max: 1.63
Current: 0.26
During the past 13 years, Steel Dynamics's highest Cash Ratio was 1.63. The lowest was 0.26. And the median was 1.00.
STLD's Cash Ratio is ranked worse than 51.22% of 615
companies
in the Steel industry
Industry Median: 0.28
vs STLD: 0.26
Steel Dynamics (NAS:STLD) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Steel Dynamics Cash Ratio Related Terms
Steel Dynamics Cash Ratio Historical Data
* Premium members only.
The historical data trend for Steel Dynamics's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Steel subindustry, Steel Dynamics's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Steel Dynamics Cash Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Steel Dynamics (STLD) has a Cash Ratio of 0.26 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Steel Dynamics and its competitors. This is 74% below median its historical median of 1.00. Over the past decade, Steel Dynamics' Cash Ratio has ranged from 0.26 to 1.63. According to the industry distribution chart, Steel Dynamics ranks #315 out of 615 companies in the Steel industry, placing it in the top 51.2%.
Is Steel Dynamics' Cash Ratio too high?
Steel Dynamics' current Cash Ratio of 0.26 is 74% below median its 10-year median of 1.00. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 1.63. The Steel industry median Cash Ratio is 0.28. Steel Dynamics' value of 0.26 is 7.1% below this industry median. Based on the distribution chart, Steel Dynamics ranks #315 out of 615 companies in the Steel industry, which is below the industry midpoint. Overall, Steel Dynamics has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Cash Ratio compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #315 out of 615 companies for Cash Ratio. This places Steel Dynamics in the lower half of its industry. The industry median Cash Ratio is 0.28. Steel Dynamics' value of 0.26 is 7.1% below this benchmark. Historically, Steel Dynamics' own Cash Ratio has ranged from 0.26 to 1.63 over the past decade. While the company's 10-year median is 1.00 vs. the industry median of 0.28, Steel Dynamics has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Steel company?
The median Cash Ratio among Steel companies is 0.28, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current Cash Ratio of 0.26 is 7.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Steel Dynamics and its competitors. For the Steel industry, the median Cash Ratio is 0.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current Cash Ratio is 0.26, which is 74% below median its own 10-year median of 1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steel Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Steel Dynamics (STLD) is currently considered Significantly Overvalued. The stock's GF Value™ is $158.87, compared to a current price of $233.52 — trading 47% above its estimated fair value. The current Cash Ratio is 0.26, which is 74% below median its 10-year median of 1.00 and 7.1% below the Steel industry median of 0.28. Steel Dynamics' overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Steel Dynamics (STLD), the current Cash Ratio is 0.26 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Steel Dynamics (STLD) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Dynamics stock appears to be overvalued.
The current stock price of $233.52 is trading 47% above its estimated GF Value™ of $158.87.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STLD:
Cash Ratio: 0.26 (74% below median its 10-year median of 1.00)
GF Value™: $158.87 vs. price of $233.52 (47% above fair value)
Industry Position: 7.1% below the Steel median (#315 of 615)
No single metric tells the full story. See the STLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steel Dynamics Inc operates as a domestic steel producer and metal recycler in the United States. The company's product portfolio comprises hot rolled sheet, hot rolled plate, painted sheet products, cold rolled sheet, and others. Its reportable segments are steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. Maximum revenue is generated from its steel operations segment, which consists of manufacturing various steel products and numerous coating operations. Its primary sources of revenue are currently from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products.
88GF Score
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