Nucor Corp (NUE)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	28,720,900	31,241,300	27,294,300	18,610,100	20,773,600
Inventory	US$ in thousands	5,577,760	5,453,530	6,011,180	3,569,090	3,842,100
Inventory turnover		5.15	5.73	4.54	5.21	5.41

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $28,720,900K ÷ $5,577,760K
= 5.15

Nucor Corp.'s inventory turnover ratio has exhibited some fluctuation over the past five years. As of December 31, 2023, the company's inventory turnover decreased to 4.82 from 5.32 in the previous year. This could imply that Nucor Corp. took longer to sell its inventory during the most recent period, which may warrant further investigation into the reasons behind this decline.

Comparing the 2023 ratio to historical data, Nucor Corp.'s inventory turnover was lower than the ratios reported in 2020 and 2019 but higher than that of 2021. This suggests that the company's efficiency in managing its inventory levels has been variable over the past few years, indicating fluctuations in sales relative to inventory holding.

Overall, while a lower inventory turnover ratio can indicate potential inefficiencies or slower sales, it is essential to conduct a more in-depth analysis to identify the specific factors influencing Nucor Corp.'s inventory turnover and assess its implications for the company's overall financial performance and operational efficiency.