Steel Dynamics (STU:SD5) ROCE % : 8.27% (As of Dec. 2024)

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What is Steel Dynamics ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Steel Dynamics's annualized ROCE % for the quarter that ended in Dec. 2024 was 8.27%.

Steel Dynamics ROCE % Historical Data

The historical data trend for Steel Dynamics's ROCE % 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 ROCE % Chart

Steel Dynamics Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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10.03

48.10

46.93

26.30

16.41

Steel Dynamics Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															17.23	24.63	18.48	13.20	8.27

Steel Dynamics ROCE % Calculation

Steel Dynamics's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	1947.463	/	( ( (13671.021 - 2138.715)	+	(14263.148 - 2053.807) )	/ 2 )
	=	1947.463	/	( (11532.306	+	12209.341)	/ 2 )
	=	1947.463	/	11870.8235
	=	16.41 %

Steel Dynamics's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	987.632	/	( ( (14109.499 - 2425.759)	+	(14263.148 - 2053.807) )	/ 2 )
	=	987.632	/	( ( 11683.74	+	12209.341 )	/ 2 )
	=	987.632	/	11946.5405
	=	8.27 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Steel Dynamics (STU:SD5) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Steel Dynamics Business Description

Industry

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

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 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.

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