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.
Peer comparison
Dec 31, 2024