Nucor Corp (NUE)

Operating return on assets (Operating ROA)

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Operating income (ttm) US$ in thousands 5,902,280 6,606,050 8,417,180 11,043,340 12,503,280 13,928,990 14,491,870 12,861,110 11,025,410 8,220,738 5,316,663 3,221,122 2,227,950 1,944,610 1,652,324 1,589,499 1,451,645 2,128,717 2,476,596 2,815,090
Total assets US$ in thousands 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 18,344,700 18,506,300 18,126,500 18,086,700
Operating ROA 16.70% 19.28% 25.22% 34.25% 38.50% 43.43% 45.76% 44.92% 42.70% 32.95% 23.12% 15.21% 11.07% 9.96% 8.80% 8.90% 7.91% 11.50% 13.66% 15.56%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $5,902,280K ÷ $35,340,500K
= 16.70%

Based on the data provided, Nucor Corp.'s operating return on assets (operating ROA) has exhibited a noticeable declining trend over the past eight quarters, dropping from 38.14% in Q1 2022 to 17.63% in Q4 2023. This indicates a decreasing efficiency in generating operating income relative to its total assets. The company's operating ROA peaked at 39.08% in Q2 2022, suggesting strong operational performance during that period.

The continuous decline in operating ROA may raise concerns about the company's operational effectiveness and asset utilization. It is essential for Nucor to closely monitor and address the factors contributing to this downward trend to sustain profitability and enhance the overall performance of the business. Further analysis and investigation into the underlying reasons for the decreasing operating ROA could provide valuable insights for management to make informed strategic decisions and improve financial performance.