Nucor Corp (NUE)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	6,383,300	4,280,850	2,364,860	2,639,670	1,534,600
Short-term investments	US$ in thousands	747,479	576,946	253,005	408,004	300,040
Total current liabilities	US$ in thousands	4,594,510	4,329,740	5,157,410	2,627,860	2,463,770
Cash ratio		1.55	1.12	0.51	1.16	0.74

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,383,300K + $747,479K) ÷ $4,594,510K
= 1.55

The cash ratio of Nucor Corp. has shown fluctuations over the past five years. The ratio stood at 0.90 in 2019, increased to 1.38 in 2020, dropped to 0.57 in 2021, rose to 1.30 in 2022, and further increased to 1.71 in 2023.

The trend indicates that Nucor Corp. has generally maintained a healthy level of liquidity over the period under review, with the ability to cover its short-term obligations with cash and cash equivalents. The significant improvements in the cash ratio in 2020 and 2023 suggest an enhanced liquidity position, potentially due to effective cash management or increased cash reserves.

However, the substantial decrease in the cash ratio in 2021 may raise concerns about the company's liquidity position during that period. It is important to assess the reasons behind this decline and evaluate the impact on Nucor Corp.'s financial health.

Overall, the positive trajectory of the cash ratio in recent years indicates a strengthening liquidity position for Nucor Corp., but continuous monitoring and analysis of the company's cash management practices are advisable to ensure sustainable financial stability.