Nucor Corp (NUE)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.51 | 2.59 | 2.93 | 4.02 | 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 |
| Quick ratio | 0.83 | 0.93 | 1.12 | 1.52 | 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 |
| Cash ratio | 0.83 | 0.93 | 1.12 | 1.52 | 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 |
The current ratio of Nucor Corp, a measure of short-term liquidity, has shown some fluctuation over the years. It stood at a healthy level of 3.54 on March 31, 2020, indicating the company had $3.54 in current assets for every $1 of current liabilities. The ratio increased to a peak of 4.39 on June 30, 2020, before gradually declining to 2.51 on December 31, 2024.
The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, also exhibited variability. It was at a low of 0.42 on September 30, 2021, but then improved to 1.57 on September 30, 2023, before settling at 0.83 on December 31, 2024.
The cash ratio, representing the most conservative measure of liquidity by considering only cash and cash equivalents, mirrored the trends observed in the quick ratio, fluctuating over the years. It ranged from a low of 0.42 on September 30, 2021, to a high of 1.57 on September 30, 2023, but eventually decreased to 0.83 on December 31, 2024.
Overall, Nucor Corp's liquidity ratios indicate a generally stable liquidity position over the years, with some fluctuations in the quick and cash ratios. It is important for the company to maintain a sufficient level of liquidity to meet its short-term obligations and operational needs.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 70.01 | 70.66 | 71.98 | 76.14 | 75.69 | 70.36 | 73.38 | 71.14 | 68.62 | 75.52 | 84.34 | 84.12 | 86.18 | 89.50 | 92.51 | 86.91 | 72.73 | 65.88 | 66.44 | 71.79 |
The cash conversion cycle is an important metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Nucor Corp, the cash conversion cycle has fluctuated over the years based on the data provided:
- In the most recent period, the cash conversion cycle was around 70 days, indicating that it takes the company approximately 70 days to convert its investments in inventory and other resources into cash flows from sales.
- The trend in the cash conversion cycle shows some variability, with fluctuations over the quarters. There was a slight increase in the cash conversion cycle in the first quarter of 2024 compared to the previous quarter, but it remained relatively stable around 70 days.
- Analyzing the data over time can provide insights into Nucor Corp's efficiency in managing its working capital and liquidity. A decreasing trend in the cash conversion cycle indicates that the company is more efficient in managing its resources and generating cash flows from its operations.
- On the other hand, an increasing trend in the cash conversion cycle may suggest inefficiencies in inventory management, collection of receivables, or payment of payables, which could impact the company's cash flow and overall financial performance.
Overall, monitoring the cash conversion cycle can help investors and analysts assess Nucor Corp's operational efficiency and working capital management, which are crucial factors in evaluating the company's financial health and sustainability.