Nucor Corp (NUE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.67% | 30.28% | 30.36% | 11.15% | 11.94% |
| Operating profit margin | 11.39% | 18.94% | 19.80% | 3.33% | 3.54% |
| Pretax margin | 17.07% | 23.67% | 24.52% | 3.61% | 7.50% |
| Net profit margin | 13.13% | 18.42% | 18.80% | 3.61% | 5.67% |
The profitability ratios of Nucor Corp. have shown fluctuations over the past five years. The gross profit margin has ranged from 11.06% in 2020 to 30.22% in 2021, with a notable decrease to 22.51% in 2023. This indicates that Nucor's ability to generate profit from its core business operations has varied significantly.
Similarly, the operating profit margin has fluctuated between 8.01% in 2020 and 25.54% in 2021, with a decrease to 17.95% in 2023. The trend suggests that Nucor's efficiency in managing its operating expenses and generating operating profits has experienced volatility.
The pretax margin has shown a wider range, from 4.15% in 2020 to 25.22% in 2021, with a notable decrease to 18.07% in 2023. This ratio reflects Nucor's ability to generate profits before accounting for taxes, and the variability indicates changing profitability levels over the years.
Lastly, the net profit margin has fluctuated between 3.56% in 2020 and 18.63% in 2021, with a decrease to 12.99% in 2023. This ratio reflects Nucor's bottom-line profitability after accounting for all expenses, including taxes. The varying trend suggests that Nucor's ability to convert revenue into net income has been inconsistent.
Overall, Nucor's profitability ratios display fluctuations over the years, indicating potential challenges in maintaining consistent levels of profitability and efficiency in its operations. Further analysis and investigation may be needed to understand the underlying factors contributing to these variations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.11% | 24.08% | 27.85% | 3.30% | 4.33% |
| Return on assets (ROA) | 12.80% | 23.42% | 26.44% | 3.58% | 6.93% |
| Return on total capital | 29.28% | 54.26% | 64.70% | 8.23% | 17.77% |
| Return on equity (ROE) | 21.61% | 41.31% | 48.71% | 6.69% | 12.27% |
Nucor Corp.'s profitability ratios have shown varying trends over the past five years.
1. Operating return on assets (Operating ROA) measures the company's operating income generated per dollar of assets. The Operating ROA has fluctuated, with a significant decrease from 36.09% in 2021 to 17.63% in 2023, indicating a decline in operating efficiency in utilizing its assets.
2. Return on assets (ROA) indicates how efficiently the company is utilizing its assets to generate profits. Nucor's ROA has ranged from 3.56% in 2020 to 26.31% in 2021. While there was an improvement in 2021, the ratio decreased to 12.76% in 2023, suggesting a potential decline in overall profitability relative to the assets.
3. Return on total capital reflects the return generated by the company for all of its capital, which includes borrowed funds. Nucor's return on total capital has shown a similar trend to ROA, with significant fluctuations across the years. The ratio peaked at 47.82% in 2021 and declined to 22.47% in 2023.
4. Return on equity (ROE) measures the return on shareholders' equity investment in the company. Nucor's ROE has also fluctuated over the years, with a significant increase from 6.65% in 2020 to 48.48% in 2021 before decreasing to 21.53% in 2023.
Overall, based on these profitability ratios, Nucor Corp. has shown mixed performance in terms of generating returns for both its assets and shareholders over the past five years. It is important for stakeholders to closely monitor the company's operational efficiency and overall profitability trends to assess its financial health and sustainability.