Nucor Corp (NUE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	2,953,310	3,591,030	3,853,970	2,298,850	2,160,100
Total current liabilities	US$ in thousands	4,594,510	4,329,740	5,157,410	2,627,860	2,463,770
Quick ratio		2.19	1.95	1.25	2.03	1.62

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,383,300K + $747,479K + $2,953,310K) ÷ $4,594,510K
= 2.19

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio of above 1 indicates that a company has enough liquid assets to cover its short-term obligations.

Nucor Corp.'s quick ratio has shown fluctuations over the past five years. In 2023, the quick ratio improved to 2.35 from 2.13 in 2022, indicating a strong ability to cover short-term liabilities with liquid assets. This may suggest improved liquidity and financial stability compared to the prior year.

The quick ratio was at its lowest in 2021 at 1.32, indicating that Nucor Corp. had a relatively lower ability to cover short-term obligations with liquid assets. However, this metric rebounded to 2.25 in 2020, showing an enhanced liquidity position compared to the previous period.

In 2019, the quick ratio was 1.78, reflecting a moderate ability to cover short-term liabilities with liquid assets. Nucor Corp.'s quick ratio has shown variability over the years, which may be influenced by changes in the company's asset composition, liabilities, or overall financial performance.

Overall, Nucor Corp.'s quick ratio has displayed fluctuations, but the recent improvement in 2023 indicates a stronger liquidity position compared to the previous year. It is essential for investors and stakeholders to monitor this ratio along with other financial indicators to assess the company's short-term liquidity and financial health accurately.