Nucor Corp (NUE)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	27,316,100	27,707,980	28,510,410	29,179,040	29,502,400	29,778,490	29,028,080	27,653,530	26,013,090	23,333,460	20,852,270	18,485,960	18,086,330	18,316,880	18,783,110	19,954,250	20,159,910	20,396,830	20,956,890	21,130,580
Inventory	US$ in thousands	5,577,760	5,246,360	5,632,320	5,590,850	5,453,530	6,046,240	6,579,140	6,245,680	6,011,180	5,678,720	5,240,750	4,360,120	3,569,090	3,260,680	3,373,260	3,875,590	3,842,100	4,072,460	4,268,800	4,445,230
Inventory turnover		4.90	5.28	5.06	5.22	5.41	4.93	4.41	4.43	4.33	4.11	3.98	4.24	5.07	5.62	5.57	5.15	5.25	5.01	4.91	4.75

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $27,316,100K ÷ $5,577,760K
= 4.90

From the provided data, Nucor Corp.'s inventory turnover has shown some fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times a company sells and replaces its inventory over a specific period.

Nucor's inventory turnover has ranged from a low of 4.33 in Q2 2022 to a high of 5.32 in Q4 2022. The company experienced a decrease in turnover in Q2 2022 before showing movements in both directions during subsequent quarters. In the most recent quarter, Q4 2023, the inventory turnover stood at 4.82, indicating a moderate decrease compared to the previous quarter but remaining close to levels seen in Q2 and Q1 2023.

Overall, Nucor's inventory turnover has exhibited a relatively stable performance, staying within a narrow range between 4.33 and 5.32 over the past two years. This stability suggests that Nucor has been able to effectively manage its inventory levels and turnover rate, maintaining a balance between holding an optimal amount of inventory and efficiently converting it into sales. Further analysis of factors impacting inventory management and sales performance could provide additional insights into the company's operational efficiency and financial health.