Nucor Corp (NUE)
Working capital turnover
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 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 | 22,588,860 | 23,752,990 | 25,030,690 | 25,595,470 |
Total current assets | US$ in thousands | 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 | 8,226,370 | 8,684,290 | 8,467,200 | 8,650,340 |
Total current liabilities | US$ in thousands | 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 | 2,463,770 | 2,585,990 | 2,380,410 | 2,568,020 |
Working capital turnover | 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 | 3.92 | 3.90 | 4.11 | 4.21 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $34,713,500K ÷ ($16,385,900K – $4,594,510K)
= 2.94
The working capital turnover ratio for Nucor Corp. has shown a declining trend over the past eight quarters, starting at 4.14 in Q1 2022 and decreasing to 2.94 in Q4 2023. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio suggests that the company is effectively managing its working capital to support sales growth.
The decreasing trend in the working capital turnover ratio could signify inefficiencies in managing the company's working capital or a slowdown in sales relative to the working capital invested. It is important for Nucor Corp. to closely monitor and improve this ratio to ensure optimal utilization of its working capital resources.
Further analysis and comparison with industry benchmarks and competitors' ratios would provide more insights into Nucor Corp.'s working capital management performance and efficiency in generating sales from its working capital.
Peer comparison
Dec 31, 2023