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.
Peer comparison
Dec 31, 2023