Nucor Corp (NUE)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,558,000 | 6,383,300 | 4,280,850 | 2,364,860 | 2,639,670 |
| Short-term investments | US$ in thousands | 581,000 | 747,479 | 576,946 | 253,005 | 408,004 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,977,000 | 4,594,510 | 4,329,740 | 5,157,410 | 2,627,860 |
| Quick ratio | 0.83 | 1.55 | 1.12 | 0.51 | 1.16 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,558,000K
+ $581,000K
+ $—K)
÷ $4,977,000K
= 0.83
The quick ratio of Nucor Corp indicates a company's ability to meet its short-term obligations with its most liquid assets.
Looking at the data provided:
- In December 2020, the quick ratio was 1.16, suggesting that Nucor had sufficient liquid assets to cover its short-term liabilities.
- However, there was a significant decrease in the quick ratio to 0.51 by December 2021, indicating potential liquidity challenges as the ratio fell below 1, which may raise concerns about the company's ability to meet its short-term obligations.
- The quick ratio improved in the following years, reaching 1.12 by December 2022 and further increasing to 1.55 by December 2023, indicating a healthier liquidity position.
- Nevertheless, there was a slight decline in the quick ratio to 0.83 by December 2024, which may indicate a decrease in the company's ability to cover its short-term liabilities with its liquid assets compared to the previous year.
Overall, while there have been fluctuations in Nucor Corp's quick ratio over the years, it is essential for the company to maintain a ratio above 1 to ensure its short-term liquidity and ability to meet its financial obligations.
Peer comparison
Dec 31, 2024