Nucor Corp (NUE)

Working capital 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 current assets	US$ in thousands	16,385,900	14,691,700	12,799,600	9,488,660	8,226,370
Total current liabilities	US$ in thousands	4,594,510	4,329,740	5,157,410	2,627,860	2,463,770
Working capital turnover		2.92	3.99	4.75	2.91	3.89

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $34,467,500K ÷ ($16,385,900K – $4,594,510K)
= 2.92

Nucor Corp.'s working capital turnover has shown fluctuations over the past five years, ranging from a low of 2.94 in 2020 to a high of 4.77 in 2021. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio generally implies better efficiency in utilizing its current assets to support sales.

The significant increase from 2020 to 2021 suggests that Nucor was able to generate more sales revenue relative to its working capital during that period, indicating improved efficiency. However, the ratio decreased in 2023 compared to the previous year, which might indicate that the company was not as effective in utilizing its working capital to support sales.

Overall, Nucor has demonstrated varying levels of efficiency in managing its working capital over the years, with improvements in some years and potential challenges in others. Further analysis of the underlying factors contributing to these fluctuations would provide more insight into the company's working capital management practices and overall financial performance.