Nucor Corp (NUE)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 2,979,000 6,239,980 10,516,800 9,421,870 1,602,380
Total assets US$ in thousands 33,940,000 35,340,500 32,479,200 25,823,100 20,125,400
Operating ROA 8.78% 17.66% 32.38% 36.49% 7.96%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,979,000K ÷ $33,940,000K
= 8.78%

Nucor Corp's operating return on assets (operating ROA) has shown significant fluctuations over the past five years. The ratio stood at 7.96% as of December 31, 2020, indicating a relatively modest performance. However, there was a notable improvement in operating ROA to 36.49% by December 31, 2021, suggesting a substantial increase in the company's operating efficiency and profitability.

This improvement was followed by a slight decline in operating ROA to 32.38% by December 31, 2022, but the ratio remained at a relatively high level compared to the initial point. Subsequently, as of December 31, 2023, there was a further decrease in operating ROA to 17.66%, indicating a potential challenge in maintaining the peak performance seen in the previous year.

Finally, by December 31, 2024, Nucor Corp's operating ROA had decreased to 8.78%, signaling a significant drop from the levels observed in the earlier years. This downward trend may suggest challenges in sustaining the high levels of operating efficiency and profitability achieved in the past. Overall, while Nucor Corp has demonstrated strong operating ROA figures in certain periods, the fluctuations in the ratio highlight the importance of continuous monitoring and management of asset utilization to drive sustainable performance.