Steel Dynamics (STU:SD5) Inventory Turnover : 1.20 (As of Sep. 2024)

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What is Steel Dynamics Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Steel Dynamics's Cost of Goods Sold for the three months ended in Sep. 2024 was €3,366 Mil. Steel Dynamics's Average Total Inventories for the quarter that ended in Sep. 2024 was €2,799 Mil. Steel Dynamics's Inventory Turnover for the quarter that ended in Sep. 2024 was 1.20.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Steel Dynamics's Days Inventory for the three months ended in Sep. 2024 was 75.88.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Steel Dynamics's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.72.

Steel Dynamics Inventory Turnover Historical Data

The historical data trend for Steel Dynamics's Inventory Turnover 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.

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Steel Dynamics Inventory Turnover Chart

Steel Dynamics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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5.10

4.42

4.98

5.01

4.82

Steel Dynamics Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															1.22	1.19	1.26	1.27	1.20

Steel Dynamics Inventory Turnover Calculation

Steel Dynamics's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	13525.23	/ (	(2954.686	+	2654.378)	/	2 )
=	13525.23	/	2804.532
=	4.82

Steel Dynamics's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	3366.494	/ (	(2855.409	+	2743.443)	/	2 )
=	3366.494	/	2799.426
=	1.20

Steel Dynamics (STU:SD5) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Steel Dynamics's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	2799.426	/	3366.494	*	365 / 4
	=	75.88

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Steel Dynamics's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	2799.426	/	3911.795
	=	0.72

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Steel Dynamics Inventory Turnover Related Terms

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Steel Dynamics Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Steel Dynamics Inc (STU:SD5) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

STLD:USA STLD:Mexico 1STLD:Italy SD5:Germany

Address

7575 West Jefferson Boulevard, Fort Wayne, IN, USA, 46804

Website

https://www.steeldynamics.com

Steel Dynamics Inc operates scrap-based steel minimills with roughly 16 million tons of annual steel production capacity. The company's segment includes steel operations, metals recycling operations, steel fabrication operations, Aluminum Operations Segment, and others. It generates maximum revenue from the steel operations segment.

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