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.