Nucor Corp (NUE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.21 | 5.17 | 5.07 | 4.79 | 4.82 | 5.19 | 4.97 | 5.13 | 5.32 | 4.83 | 4.33 | 4.34 | 4.24 | 4.08 | 3.95 | 4.20 | 5.02 | 5.54 | 5.49 | 5.08 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.10 | 3.78 | 3.48 | 3.10 | 2.94 | 3.06 | 3.32 | 3.79 | 4.01 | 4.44 | 4.95 | 4.14 | 4.77 | 4.28 | 3.18 | 2.89 | 2.94 | 3.04 | 3.08 | 3.93 |
Nucor Corp's inventory turnover ratio has displayed a fluctuating trend over the past years, ranging from 3.95 to 5.54. This indicates that the company effectively manages its inventory levels, with a higher turnover implying efficient utilization of inventory.
On the other hand, receivables turnover and payables turnover data are unavailable, making it challenging to assess the efficiency of Nucor's collection and payment cycles.
In terms of working capital turnover, Nucor's performance has shown variability, with values ranging from 2.89 to 4.95. A higher turnover ratio suggests that the company efficiently utilizes its working capital to generate revenue. Overall, continuous monitoring of these activity ratios can provide insights into Nucor's operational efficiency and effectiveness in managing its resources.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.01 | 70.66 | 71.98 | 76.14 | 75.69 | 70.36 | 73.38 | 71.14 | 68.62 | 75.52 | 84.34 | 84.12 | 86.18 | 89.50 | 92.51 | 86.91 | 72.73 | 65.88 | 66.44 | 71.79 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Nucor Corp, the activity ratios can be examined as follows:
1. Days of Inventory on Hand (DOH):
- Nucor Corp has shown fluctuations in its inventory management over the analyzed period.
- The days of inventory on hand ranged from a low of 65.88 days in September 2020 to a high of 92.51 days in June 2021.
- Overall, Nucor Corp has managed to reduce its inventory holding period towards the end of the period, with a decrease to 70.01 days by December 2024.
2. Days of Sales Outstanding (DSO):
- Data on days of sales outstanding is not provided in the provided dataset, which limits the assessment of Nucor Corp's efficiency in collecting accounts receivable.
3. Number of Days of Payables:
- Similar to DSO, there are no figures available for the number of days of payables, which would have helped in understanding the company's payment terms and cash flow management.
In conclusion, Nucor Corp's inventory management has exhibited fluctuations over the analyzed period, with some improvements seen in reducing the days of inventory on hand towards the end of the period. However, without data on DSO and payables, a comprehensive analysis of the company's overall activity ratios is limited.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 3.45 | 3.71 | 4.03 | 4.32 | 4.57 | 4.66 | 4.48 | 4.50 | 4.03 | 3.59 | 3.06 | 2.92 | 2.93 | 3.13 | 3.45 |
| Total asset turnover | 0.91 | 0.91 | 0.96 | 1.01 | 0.98 | 1.04 | 1.12 | 1.23 | 1.28 | 1.35 | 1.36 | 1.40 | 1.41 | 1.26 | 1.13 | 1.02 | 1.00 | 1.03 | 1.09 | 1.24 |
Nucor Corp's Fixed Asset Turnover ratio measures the efficiency of the company in generating sales revenue from its fixed assets. The trend indicates an improvement in asset utilization from March 31, 2020, to June 30, 2022, with the ratio steadily increasing from 3.45 to 4.66. However, there was a slight decrease in the ratio after June 30, 2022, down to 3.71 by June 30, 2023, showing a potential decline in the efficiency of utilizing fixed assets. The ratio stabilized around 4.00 by March 31, 2024, which suggests a relatively healthy level of fixed asset turnover.
On the other hand, the Total Asset Turnover ratio, which reflects the firm's overall efficiency in generating sales from all assets, had a relatively stable trend from March 31, 2020, to June 30, 2022, hovering around 1.00 to 1.41. Subsequently, the ratio exhibited a declining trend, reaching 0.91 by December 31, 2024. This indicates a decreasing ability to generate sales from total assets over time, which may raise concerns about the company's asset utilization efficiency.
In summary, while the Fixed Asset Turnover ratio showed fluctuations but generally improved over the observed period, the Total Asset Turnover ratio displayed a more inconsistent trend with a decline towards the end of the period, potentially signaling challenges in effectively utilizing all assets to generate sales revenue.