Nucor Corp (NUE)

Payables 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
Payables	US$ in thousands	2,020,290	1,649,520	1,974,040	1,432,160	1,201,700
Payables turnover		14.22	18.94	13.83	12.99	17.29

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $28,720,900K ÷ $2,020,290K
= 14.22

The payables turnover ratio for Nucor Corp. has shown fluctuation over the past five years. The ratio indicates how many times a company pays off its accounts payable during a period. A higher ratio typically suggests that the company is efficiently managing its payables by paying them off quickly.

In 2023, the payables turnover ratio was 13.31, showing a decrease from the previous year's ratio of 17.59. This decline may indicate that Nucor Corp. took longer to pay off its accounts payable compared to the prior year.

Comparing the 2023 ratio to 2021 and 2020, the payables turnover has increased from 12.90 and 12.51, respectively. This improvement suggests that Nucor Corp. may have enhanced its payables management practices during the last two years.

However, the 2023 ratio is lower than the ratio in 2019, which was 16.57. This decrease over the five-year period may raise concerns about Nucor Corp.'s efficiency in managing its payables. It is essential for the company to continuously monitor and improve its payables turnover to ensure optimal financial health and liquidity.