Nucor Corp (NUE)

Liquidity ratios

	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
Current ratio	3.57	3.72	3.82	3.74	3.39	3.10	2.62	2.88	2.48	2.53	3.11	3.50	3.61	3.78	4.39	3.54	3.34	3.36	3.56	3.37
Quick ratio	2.19	2.37	2.31	1.21	1.95	0.74	0.44	0.81	1.25	0.42	0.80	0.96	1.16	1.38	1.55	0.63	0.74	0.75	0.62	0.62
Cash ratio	1.55	1.57	1.34	1.21	1.12	0.74	0.44	0.81	0.51	0.42	0.80	0.96	1.16	1.38	1.55	0.63	0.74	0.75	0.62	0.62

Nucor Corp.'s liquidity ratios have shown overall improvement over the quarters presented. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has been consistently above 3.0 in the latest quarters, indicating a healthy liquidity position. The trend shows a slight fluctuation but generally remains strong.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also demonstrated a positive trend, increasing from 1.66 in Q1 2022 to 2.35 in Q4 2023. This indicates that Nucor Corp. has a sufficient ability to meet its short-term obligations even without relying on inventory liquidation.

Furthermore, the cash ratio, which shows the proportion of current liabilities covered by cash and cash equivalents, has shown a significant improvement from 0.50 in Q2 2022 to 1.71 in Q4 2023. This suggests that Nucor Corp. has an increasing ability to settle its short-term liabilities with its cash reserves alone.

Overall, Nucor Corp.'s liquidity ratios depict a financially stable position with a strong ability to meet its short-term obligations and manage liquidity effectively.

Additional liquidity measure

		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
Cash conversion cycle	days	78.59	79.69	86.11	44.77	78.64	51.92	53.61	57.35	95.20	59.58	53.15	53.26	43.13	40.84	48.02	49.13	47.81	49.42	53.10	52.09

The cash conversion cycle of Nucor Corp. over the past eight quarters has shown variations in the number of days it takes the company to convert its investment in raw materials into cash received from customers. In Q4 2023, Nucor had a cash conversion cycle of 79.33 days, indicating a relatively efficient process compared to the previous quarter (Q3 2023) where the cycle stretched to 80.50 days. However, this improvement was not consistent as in Q2 2023 the cycle extended to 86.96 days before decreasing to 79.18 days in Q1 2023.

When compared to the same quarters in 2022, Nucor's cash conversion cycle has generally improved, with Q4 2023 at 79.33 days being notably better than both Q4 2022 at 79.44 days and Q3 2022 at 88.43 days. This trend suggests that Nucor has been managing its cash flow and working capital effectively in recent quarters. It is important for the company to continue monitoring and optimizing its cash conversion cycle to ensure efficient utilization of resources and timely receipt of cash from its operational activities.