Nucor Corp (NUE)

Working capital turnover

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
Revenue (ttm) US$ in thousands 30,734,410 31,362,940 32,694,510 34,140,600 34,713,500 35,732,930 37,458,000 39,729,240 41,512,560 43,153,000 42,965,400 39,960,060 36,483,900 31,379,560 25,994,320 21,532,470 20,139,670 20,011,360 20,547,900 22,116,580
Total current assets US$ in thousands 12,475,000 13,521,200 14,258,100 14,642,700 16,385,900 15,948,900 15,290,500 14,316,400 14,691,700 14,356,500 14,033,800 14,781,400 12,799,600 12,123,800 12,055,900 10,409,100 9,488,660 8,965,850 8,634,960 7,847,250
Total current liabilities US$ in thousands 4,977,000 5,216,790 4,865,260 3,645,980 4,594,510 4,283,850 4,004,170 3,829,940 4,329,740 4,632,090 5,359,200 5,133,840 5,157,410 4,797,600 3,879,950 2,970,450 2,627,860 2,373,300 1,965,040 2,218,570
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $30,734,410K ÷ ($12,475,000K – $4,977,000K)
= 4.10

Nucor Corp has shown fluctuations in its working capital turnover over the given periods. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

Initially, in March 2020, the working capital turnover stood at 3.93, reflecting a high efficiency in utilizing its working capital to generate sales. However, there was a gradual decrease in this ratio over the next few quarters, reaching a low of 2.89 in March 2021. This decline could imply inefficiencies in managing working capital or possibly a decrease in sales relative to working capital.

Subsequently, there was a significant improvement in the working capital turnover from September 2021 to December 2022, where the ratio increased steadily from 4.28 to 4.01. This upward trend suggests a more efficient use of working capital resources in generating sales during this period.

However, from March 2023 to December 2024, the working capital turnover ratio fluctuated within a narrower range, indicating some stability in how effectively the working capital was being utilized to generate revenue. The ratio ranged from a low of 2.94 in December 2023 to a high of 4.10 in December 2024.

In conclusion, while there have been fluctuations in Nucor Corp's working capital turnover ratio over the analyzed periods, the company has shown periods of both efficiency and inefficiency in utilizing its working capital to drive sales revenue.