Nucor Corp (NUE)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,027,000 | 4,524,800 | 7,607,340 | 6,827,460 | 721,470 |
| Total stockholders’ equity | US$ in thousands | 20,294,000 | 20,940,600 | 18,414,700 | 14,016,400 | 10,788,700 |
| ROE | 9.99% | 21.61% | 41.31% | 48.71% | 6.69% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,027,000K ÷ $20,294,000K
= 9.99%
Nucor Corp's Return on Equity (ROE) has shown significant fluctuations over the years. In 2020, the ROE was at a relatively low level of 6.69%, indicating that the company's profitability in relation to shareholders' equity was not very strong. However, in 2021, there was a substantial increase in ROE to 48.71%, suggesting a significant improvement in the company's ability to generate profit from shareholder investments.
The trend continued in 2022 with ROE standing at 41.31%, reflecting continued profitability and efficiency in the utilization of equity. By 2023, there was a decline in ROE to 21.61%, indicating a decrease in the company's profitability relative to equity compared to the previous year.
In 2024, the ROE further decreased to 9.99%, signifying a notable drop in the company's ability to generate profit using shareholder funds. This decline raises concerns about the company's efficiency in utilizing equity capital effectively.
Overall, Nucor Corp's ROE performance has been volatile, with significant fluctuations observed across the years. It is important for investors and analysts to closely monitor these changes and understand the underlying factors driving the company's ROE to assess its financial health and performance.
Peer comparison
Dec 31, 2024