Nucor Corp (NUE)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	34,467,500	41,293,600	36,320,800	19,973,000	22,431,500
Property, plant and equipment	US$ in thousands	11,049,800	9,616,920	8,114,820	6,899,110	6,178,560
Fixed asset turnover		3.12	4.29	4.48	2.90	3.63

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $34,467,500K ÷ $11,049,800K
= 3.12

The fixed asset turnover ratio measures how efficiently a company generates revenues from its fixed assets. A higher fixed asset turnover indicates that the company is using its fixed assets more effectively to generate sales.

Based on the provided data for Nucor Corp., we observe fluctuations in the fixed asset turnover ratio over the past five years. In 2023, the fixed asset turnover decreased to 3.14 from 4.32 in 2022. This decrease may signify a decline in the efficiency of utilizing fixed assets to generate revenue.

Comparing the 2023 ratio with previous years, it is noted that the fixed asset turnover was the highest in 2021 at 4.50, indicating that Nucor was generating more revenue relative to its fixed assets in that year. The lowest ratio of 2.92 was observed in 2020, showing a potential inefficiency in utilizing fixed assets to generate sales during that period.

Overall, Nucor's fixed asset turnover ratio has varied over the years, suggesting fluctuations in the company's efficiency in generating revenue from its fixed assets. Further evaluation and comparison with industry benchmarks may provide insights into Nucor's operational performance in utilizing its fixed assets.