Nucor Corp (NUE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,979,000 | 6,518,710 | 10,463,800 | 9,363,980 | 1,002,150 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 20,294,000 | 20,940,600 | 18,414,700 | 14,016,400 | 10,788,700 |
| Return on total capital | 14.68% | 31.13% | 56.82% | 66.81% | 9.29% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,979,000K ÷ ($—K + $20,294,000K)
= 14.68%
Nucor Corp's return on total capital has shown significant fluctuations over the past five years. In December 2020, the return on total capital stood at 9.29%, indicating the company's ability to generate earnings relative to the total capital employed. This increased dramatically to 66.81% by December 2021, reflecting a substantial improvement in capital efficiency.
In the following years, Nucor Corp continued to exhibit strong performance with return on total capital at 56.82% in December 2022 and 31.13% in December 2023. However, there was a notable decline to 14.68% by December 2024, which may indicate a decrease in capital utilization or profitability during that period.
Overall, Nucor Corp's return on total capital has demonstrated variability, showcasing both periods of robust performance and instances of lower efficiency in utilizing its capital resources. It is important for stakeholders to monitor these fluctuations and understand the underlying factors driving the company's capital returns over time.
Peer comparison
Dec 31, 2024