Nucor Corp (NUE)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	34,467,500	41,293,600	36,320,800	19,973,000	22,431,500
Receivables	US$ in thousands	2,953,310	3,591,030	3,853,970	2,298,850	2,160,100
Receivables turnover		11.67	11.50	9.42	8.69	10.38

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $34,467,500K ÷ $2,953,310K
= 11.67

The receivables turnover ratio for Nucor Corp. has shown a generally increasing trend over the past five years, indicating improved efficiency in collecting receivables from customers. In 2023, the ratio stood at 11.75, representing an increase from the previous year's 11.56. This implies that, on average, Nucor Corp. collected its accounts receivable approximately 11.75 times during the year, which is a positive sign of prompt collections.

Comparing the 2023 ratio to that of 2021 and 2022, we observe a significant improvement in collection efficiency. The 2023 ratio of 11.75 reflects a notable increase from the 9.47 in 2021 and the 8.76 in 2020. This suggests that Nucor Corp. has enhanced its ability to convert credit sales into cash receipts more rapidly in recent years.

However, when looking at the 2019 receivables turnover ratio of 10.46, we notice a slight decrease compared to 2023, indicating there might have been a temporary dip in collection efficiency that year.

Overall, the upward trend in the receivables turnover ratio for Nucor Corp. is a positive indicator of effective management of accounts receivable. It signifies the company's ability to efficiently collect outstanding receivables, which can improve cash flow and working capital management.