Nucor Corp (NUE)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	34,713,500	35,732,930	37,458,000	39,729,240	41,512,560	43,153,000	42,965,400	39,960,060	36,483,900	31,379,560	25,994,320	21,532,470	20,139,670	20,011,360	20,547,900	22,116,580	22,588,860	23,752,990	25,030,690	25,595,470
Property, plant and equipment	US$ in thousands	11,049,800	10,355,800	10,093,400	9,862,990	9,616,920	9,440,070	9,213,600	8,921,260	8,114,820	7,777,280	7,235,540	7,031,690	6,899,110	6,829,730	6,556,450	6,416,960	6,178,560	5,886,730	5,797,510	5,573,240
Fixed asset turnover		3.14	3.45	3.71	4.03	4.32	4.57	4.66	4.48	4.50	4.03	3.59	3.06	2.92	2.93	3.13	3.45	3.66	4.04	4.32	4.59

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $34,713,500K ÷ $11,049,800K
= 3.14

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better efficiency in generating sales from the investment in fixed assets.

Examining Nucor Corp.'s fixed asset turnover ratio from Q1 2022 to Q4 2023, we observe a consistent upward trend, starting at 4.48 and increasing to 4.03 in Q1 2023. This indicates that Nucor has been improving its efficiency in generating sales from its fixed assets over the periods analyzed.

In Q2 2022, the fixed asset turnover reached 4.66, showing a peak in efficiency during the analyzed period. The ratio slightly declined in the subsequent quarters but remained relatively high, with values of 4.32 in Q4 2022, 3.71 in Q2 2023, and 3.45 in Q3 2023.

The latest data point reflects a fixed asset turnover ratio of 3.14 in Q4 2023. Although this is lower than the peak observed in Q2 2022, Nucor's fixed asset turnover remains relatively strong, indicating effective utilization of fixed assets to generate revenue.

Overall, Nucor Corp.'s fixed asset turnover has shown a positive trend over the analyzed period, suggesting that the company has been successful in efficiently utilizing its fixed assets to drive revenue growth. However, ongoing monitoring is important to ensure that this efficiency is maintained or further improved in the future.