Nucor Corp (NUE)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.98 | 75.71 | 68.62 | 86.18 | 72.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 69.98 | 75.71 | 68.62 | 86.18 | 72.73 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.98 + — – —
= 69.98
The cash conversion cycle for Nucor Corp has shown varying trends over the past five years. In December 2020, the company's cash conversion cycle was 72.73 days, indicating that it took around 72 days for Nucor to convert its investments in inventory and other resources into cash flows from sales.
By December 2021, the cash conversion cycle had increased to 86.18 days, suggesting a longer period for the company to complete this cycle. This increase could be a result of slower inventory turnover or longer accounts receivable collection periods.
In December 2022, Nucor was able to improve its cash conversion cycle to 68.62 days, indicating more efficient working capital management compared to the previous year.
Subsequently, in December 2023, the cash conversion cycle rose slightly to 75.71 days, signaling a moderate increase in the time it takes for the company to convert its investments into cash.
By December 2024, the cash conversion cycle decreased to 69.98 days, which may suggest improved operational efficiency or working capital management strategies within Nucor Corp.
Overall, Nucor Corp has experienced fluctuations in its cash conversion cycle over the past five years, with ups and downs in the efficiency of converting investments into cash. It is essential for the company to continue monitoring and managing its working capital effectively to ensure optimal cash flow operations in the future.
Peer comparison
Dec 31, 2024