Nucor Corp (NUE)

Payables 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
Payables	US$ in thousands	2,020,290	1,854,710	1,855,500	2,012,090	1,649,520	1,810,390	2,315,800	1,900,540	1,974,040	1,870,040	2,204,140	1,662,830	1,432,160	1,210,990	902,071	1,189,640	1,201,700	1,310,670	1,219,790	1,429,780
Payables turnover		13.52	14.94	15.37	14.50	17.89	16.45	12.53	14.55	13.18	12.48	9.46	11.12	12.63	15.13	20.82	16.77	16.78	15.56	17.18	14.78

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $27,316,100K ÷ $2,020,290K
= 13.52

The payables turnover ratio measures how efficiently a company is managing its payables. It indicates how many times a company pays off its accounts payable during a period. A higher payables turnover ratio suggests that the company is managing its payables effectively.

Analyzing the data provided for Nucor Corp., we can see that there has been some fluctuation in the payables turnover ratio over the past eight quarters. The ratio ranged from a low of 12.30 in Q2 2022 to a high of 17.59 in Q4 2022.

The payables turnover ratio increased from Q2 2022 to Q4 2022, suggesting that Nucor Corp. was paying off its accounts payable more frequently during that period. However, the ratio then decreased in the following quarters but remained relatively high overall, indicating that the company continued to manage its payables efficiently.

Overall, Nucor Corp. has demonstrated a strong ability to manage its payables effectively, as evidenced by the generally high payables turnover ratios in the recent quarters. This indicates that the company is able to pay its suppliers promptly and may benefit from good working capital management practices.