Nucor Corp (NUE)

Total asset 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
Total assets	US$ in thousands	35,340,500	32,479,200	25,823,100	20,125,400	18,344,700
Total asset turnover		0.98	1.27	1.41	0.99	1.22

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $34,467,500K ÷ $35,340,500K
= 0.98

Total asset turnover measures the efficiency with which Nucor Corp. generates revenue from its total assets. A higher total asset turnover ratio indicates that the company is utilizing its assets more effectively to generate sales.

In the year ending December 31, 2023, Nucor Corp.'s total asset turnover decreased to 0.98 from 1.28 in 2022. This decline suggests that the company was less efficient in generating sales revenue from its assets compared to the previous year. It is worth noting that a total asset turnover below 1 may indicate that the company is not efficiently utilizing its assets to generate revenue.

When comparing the total asset turnover ratio over the past five years, Nucor Corp. experienced fluctuations in its efficiency in utilizing assets to generate revenue. The ratio peaked at 1.41 in 2021, indicating a high level of asset utilization efficiency, but dropped to 1.00 in 2020 and further decreased to 0.98 in 2023. This trend suggests that the company may have faced challenges in managing its assets effectively in recent years.

Overall, Nucor Corp.'s declining total asset turnover ratio in 2023 may raise concerns about the company's ability to efficiently convert its investments in assets into revenue. It would be essential for the company to assess its asset management strategies and identify opportunities for improvement in order to enhance its operational efficiency and profitability.