Nucor Corp (NUE)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	2,977,707	3,629,427	4,651,180	5,811,260	6,235,100	6,858,510	7,688,750	9,182,530	10,516,810	11,812,870	12,327,530	10,865,800	9,255,860	6,862,079	4,318,831	2,468,343	1,612,909	1,321,460	1,397,988	1,728,560
Total assets	US$ in thousands	33,940,000	34,346,200	34,185,200	33,932,500	35,340,500	34,267,800	33,379,900	32,246,400	32,479,200	32,072,700	31,668,500	28,632,900	25,823,100	24,949,500	22,995,600	21,172,400	20,125,400	19,519,300	18,766,000	17,866,100
Operating ROA		8.77%	10.57%	13.61%	17.13%	17.64%	20.01%	23.03%	28.48%	32.38%	36.83%	38.93%	37.95%	35.84%	27.50%	18.78%	11.66%	8.01%	6.77%	7.45%	9.68%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $2,977,707K ÷ $33,940,000K
= 8.77%

Operating Return on Assets (ROA) is a key financial ratio that assesses a company's operational efficiency in generating profits relative to its total assets. For Nucor Corp, the trend of Operating ROA shows some fluctuations over the reporting periods.

The Operating ROA increased steadily from March 31, 2020 (9.68%) to June 30, 2021 (18.78%), indicating an improvement in the company's ability to generate operating profits from its assets. This significant rise in Operating ROA during this period reflects a positive trend in the company's operational performance.

From June 30, 2021 to December 31, 2022, the Operating ROA remained relatively high, ranging from 32.38% to 38.93%, indicating sustained efficiency in utilizing assets to generate operating income. Nucor Corp demonstrated a strong performance during this period in terms of profitability relative to its asset base.

However, the Operating ROA started to decline from March 31, 2023 (28.48%) onwards, reaching 8.77% as of December 31, 2024. This downward trend may suggest potential challenges or changes in the company's operating efficiency or asset utilization.

In conclusion, the Operating ROA trend for Nucor Corp indicates a period of strength and profitability followed by a decline in recent periods, which may warrant further investigation into the factors influencing the company's operational performance and asset utilization.