Nucor Corp (NUE)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	26,632,000	26,889,500	29,009,200	25,458,500	17,911,700
Inventory	US$ in thousands	5,106,000	5,577,760	5,453,530	6,011,180	3,569,090
Inventory turnover		5.22	4.82	5.32	4.24	5.02

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $26,632,000K ÷ $5,106,000K
= 5.22

Nucor Corp's inventory turnover over the past five years shows some fluctuations but generally displays a stable trend. The inventory turnover ratio measures how efficiently a company manages its inventory by dividing the cost of goods sold by the average inventory balance.

In 2020, the inventory turnover was 5.02, indicating that Nucor Corp sold and replaced its inventory approximately 5 times during that year. The ratio decreased to 4.24 in 2021, suggesting a slower inventory turnover rate. However, the company improved its inventory management in 2022 with a turnover ratio of 5.32, indicating a more efficient utilization of inventory.

The ratio slightly declined to 4.82 in 2023, implying that the company took slightly longer to sell and replace its inventory during that period. Finally, in 2024, the inventory turnover increased to 5.22, showing an improvement in inventory management efficiency.

Overall, Nucor Corp's inventory turnover performance reflects a mixed picture, with some years showing stronger inventory management practices than others. Maintaining a healthy and consistent inventory turnover ratio is crucial for managing working capital effectively and optimizing profitability.