Nucor Corp (NUE)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 22.51% | 23.84% | 25.20% | 27.80% | 30.12% | 32.28% | 33.73% | 32.18% | 30.22% | 26.20% | 20.45% | 14.96% | 11.06% | 9.72% | 9.81% | 10.91% | 11.86% | 14.13% | 16.28% | 17.44% |
| Operating profit margin | 17.00% | 18.49% | 22.47% | 27.80% | 30.12% | 32.28% | 33.73% | 32.18% | 30.22% | 26.20% | 20.45% | 14.96% | 11.06% | 9.72% | 8.04% | 7.19% | 6.43% | 8.96% | 9.89% | 11.00% |
| Pretax margin | 16.95% | 17.79% | 18.97% | 21.41% | 23.54% | 26.02% | 27.42% | 26.07% | 24.41% | 19.69% | 14.10% | 8.65% | 3.58% | 3.41% | 3.81% | 5.13% | 7.45% | 10.00% | 11.61% | 12.81% |
| Net profit margin | 13.03% | 13.98% | 14.81% | 16.73% | 18.33% | 19.93% | 21.03% | 19.97% | 18.71% | 15.86% | 11.70% | 7.63% | 3.58% | 2.15% | 2.49% | 3.57% | 5.63% | 7.62% | 8.84% | 9.80% |
Nucor Corp.'s profitability ratios have shown a general downward trend over the past eight quarters. The gross profit margin has declined steadily from 30.12% in Q4 2022 to 22.51% in Q4 2023, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has decreased from 27.33% in Q1 2022 to 17.95% in Q4 2023, reflecting a decline in efficiency in generating profits from core operations. The pretax margin has followed a similar trend, dropping from 28.55% in Q2 2022 to 18.07% in Q4 2023.
The net profit margin, which represents the company's bottom line profitability, has also shown a consistent decline from 20.94% in Q2 2022 to 12.99% in Q4 2023. This suggests that Nucor Corp. is experiencing challenges in controlling costs and expenses relative to its revenue generation.
Overall, these declining profitability ratios indicate a potential strain on Nucor Corp.'s overall financial performance and efficiency in converting sales into profits. Further analysis of the company's cost structure and revenue streams may be necessary to address these declining trends and improve overall profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 12.80% | 14.58% | 16.62% | 20.62% | 23.42% | 26.82% | 28.53% | 27.87% | 26.44% | 19.94% | 13.23% | 7.76% | 3.58% | 2.21% | 2.73% | 4.42% | 6.93% | 9.78% | 12.20% | 13.87% |
| Return on total capital | 29.28% | 32.25% | 36.80% | 45.98% | 54.26% | 64.55% | 71.24% | 69.62% | 64.70% | 47.23% | 31.21% | 17.66% | 8.23% | 8.23% | 9.29% | 12.81% | 17.77% | 24.26% | 21.12% | 23.96% |
| Return on equity (ROE) | 21.61% | 24.41% | 27.81% | 34.96% | 41.31% | 48.58% | 53.75% | 52.49% | 48.71% | 37.07% | 24.82% | 14.36% | 6.69% | 4.18% | 5.02% | 7.77% | 12.27% | 17.32% | 21.47% | 24.80% |
Nucor Corp.'s profitability ratios show a consistent and strong performance over the quarters presented.
1. Operating Return on Assets (Operating ROA):
The Operating ROA has declined gradually over the quarters, indicating a decreasing efficiency in generating operating income relative to the total assets. However, the ratios remain relatively high, ranging from 17.63% to 38.14%, showcasing Nucor's ability to efficiently utilize its assets to generate operating profits.
2. Return on Assets (ROA):
The ROA also exhibits a decreasing trend quarter over quarter but remains robust, ranging from 12.76% to 27.75%. This ratio reflects the company's ability to generate profits from its total assets, including both operating and non-operating activities.
3. Return on Total Capital:
The Return on Total Capital is significant, ranging from 22.47% to 51.58%, indicating the company's ability to generate returns from all sources of capital, including debt and equity. The ratios show a consistent growth trend over the periods presented.
4. Return on Equity (ROE):
Nucor Corp.'s Return on Equity is consistently high, ranging from 21.53% to 53.52%. This indicates the company's ability to generate profits relative to shareholders' equity, reflecting strong financial performance and efficient use of shareholder investments.
Overall, Nucor Corp. demonstrates strong profitability performance across all ratios, with a slight declining trend observed in the Operating ROA, ROA, and ROE. The company's ability to maintain high returns on total capital signifies efficient utilization of both debt and equity financing to generate profits.