Nucor Corp (NUE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.35% | 22.54% | 30.12% | 30.22% | 11.06% |
| Operating profit margin | 9.69% | 17.98% | 25.33% | 25.82% | 7.96% |
| Pretax margin | 9.44% | 18.07% | 24.68% | 25.22% | 4.15% |
| Net profit margin | 6.60% | 13.03% | 18.33% | 18.71% | 3.58% |
Nucor Corp's profitability ratios have shown variability over the years.
- Gross profit margin has experienced significant improvement from 11.06% in December 2020 to 30.12% in December 2022, before declining slightly to 13.35% in December 2024.
- Operating profit margin followed a similar trend, with a notable increase from 7.96% in December 2020 to 25.33% in December 2022, then falling to 9.69% in December 2024.
- Pretax margin also saw a substantial rise from 4.15% in December 2020 to 24.68% in December 2022, before decreasing to 9.44% in December 2024.
- Net profit margin showed a surge from 3.58% in December 2020 to 18.33% in December 2022, then declining to 6.60% in December 2024.
Overall, Nucor Corp experienced a period of increasing profitability till 2022, followed by a decline in margins by the end of 2024. The fluctuations in these margins indicate shifts in the company's efficiency in generating profits relative to its revenue and operational costs over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.78% | 17.66% | 32.38% | 36.49% | 7.96% |
| Return on assets (ROA) | 5.97% | 12.80% | 23.42% | 26.44% | 3.58% |
| Return on total capital | 14.68% | 31.13% | 56.82% | 66.81% | 9.29% |
| Return on equity (ROE) | 9.99% | 21.61% | 41.31% | 48.71% | 6.69% |
Nucor Corp's profitability ratios display a varying trend over the years. In terms of Operating return on assets (Operating ROA), the company experienced a significant increase from 7.96% in 2020 to 36.49% in 2021, indicating improved operational efficiency. Subsequently, there was a slight dip to 32.38% in 2022 followed by a further decrease to 17.66% in 2023. The ratio then decreased to 8.78% in 2024, suggesting a decline in the company's ability to generate profit from its assets.
Similarly, the Return on assets (ROA) showed a substantial uptrend, rising from 3.58% in 2020 to 26.44% in 2021, showcasing an efficient utilization of assets to generate profits. However, the ratio decreased to 23.42% in 2022 and further dropped to 12.80% in 2023, indicating a potential inefficiency in asset management. In 2024, the ROA further declined to 5.97%, signifying a reduced ability to generate profits from its assets.
Analyzing the Return on total capital, there was a notable surge from 9.29% in 2020 to 66.81% in 2021, depicting a significant improvement in capital efficiency. The ratio then decreased to 56.82% in 2022 and further declined to 31.13% in 2023, indicating a potential decrease in the company's profitability concerning its total capital. In 2024, the Return on total capital further decreased to 14.68%, suggesting a reduced ability to generate returns from its total invested capital.
Furthermore, the Return on equity (ROE) exhibited a similar pattern of improvement followed by a decline. The ROE surged from 6.69% in 2020 to 48.71% in 2021, indicating enhanced profitability for the company's shareholders. Subsequently, the ratio dropped to 41.31% in 2022 and further decreased to 21.61% in 2023. In 2024, the ROE declined to 9.99%, highlighting a reduced profitability for the company's equity holders.
Overall, the profitability ratios of Nucor Corp demonstrate fluctuations in profitability and efficiency over the years, emphasizing the importance of closely monitoring financial performance metrics to assess the company's operational effectiveness and profitability.