Nucor Corp (NUE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.22 | 4.82 | 5.32 | 4.24 | 5.02 | |
| DOH | days | 69.98 | 75.71 | 68.62 | 86.18 | 72.73 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.22
= 69.98
Based on the data provided for Nucor Corp's days of inventory on hand (DOH) from December 31, 2020, to December 31, 2024, the trend indicates fluctuations in the number of days it takes for the company to convert its inventory into sales.
The DOH increased from 72.73 days as of December 31, 2020, to 86.18 days by December 31, 2021, suggesting a lengthening of the time period required to sell inventory. This increase could potentially indicate challenges in inventory management, such as excess inventory or slower sales.
Subsequently, there was a decrease in DOH to 68.62 days by December 31, 2022, followed by an increase to 75.71 days by December 31, 2023, and a subsequent decrease to 69.98 days by December 31, 2024. These fluctuations in DOH can be attributed to changes in production levels, sales volumes, and overall inventory management efficiency within the company.
Overall, it is important for Nucor Corp to closely monitor its DOH metric to ensure optimal inventory turnover and efficient management of its working capital. An increasing trend in DOH may indicate potential liquidity challenges, while a decreasing trend could point towards improved operational efficiency.
Peer comparison
Dec 31, 2024