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.
Peer comparison
Dec 31, 2023