Nucor Corp (NUE)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	70.89	63.71	80.39	70.00	67.51
Days of sales outstanding (DSO)	days	31.27	31.74	38.73	42.01	35.15
Number of days of payables	days	25.67	19.27	26.40	28.09	21.11
Cash conversion cycle	days	76.48	76.18	92.72	83.92	81.54

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.89 + 31.27 – 25.67
= 76.48

The cash conversion cycle of Nucor Corp. has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle was 79.33 days, slightly lower than the previous year's 79.44 days. This indicates that Nucor was able to manage its cash conversion more efficiently in 2023 compared to 2022.

However, in 2021, the cash conversion cycle was significantly higher at 96.44 days, indicating that the company took longer to convert its investments in inventory and accounts receivable into cash. This may suggest potential challenges in managing working capital during that year.

In 2020 and 2019, Nucor's cash conversion cycles were 85.21 days and 83.31 days, respectively, showing relatively stable performance in converting assets into cash over those years.

Overall, Nucor Corp. should continue monitoring and managing its cash conversion cycle effectively to optimize its working capital and liquidity position.