Nucor Corp (NUE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.67 | 1.69 | 1.76 | 1.84 | 1.87 |
Based on the provided data for Nucor Corp, we can see that the solvency ratios indicate a strong financial position in terms of debt obligations and leveraging:
1. Debt-to-assets ratio: Nucor Corp has consistently maintained a debt-to-assets ratio of 0.00 across the years 2020 to 2024. This indicates that the company does not rely heavily on debt to finance its assets, which is a positive sign for solvency and financial stability.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio for Nucor Corp stands at 0.00 for the years 2020 to 2024. This signifies that the company's capital structure is not heavily burdened by debt, further supporting its solvency position.
3. Debt-to-equity ratio: Nucor Corp also maintains a debt-to-equity ratio of 0.00 consistently from 2020 to 2024. This ratio indicates that the company's debt levels are negligible compared to its equity, reflecting a healthy balance between debt and equity financing.
4. Financial leverage ratio: The financial leverage ratio shows a decreasing trend from 1.87 in 2020 to 1.67 in 2024. A decreasing trend in this ratio signifies that Nucor Corp is gradually reducing its reliance on debt financing, which is a positive indication of improved financial health and reduced financial risk.
Overall, based on the solvency ratios analyzed, Nucor Corp appears to be in a strong financial position with low debt levels and a balanced capital structure, indicating a healthy level of solvency and financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 99.30 | 26.50 | 61.47 | 58.95 | 6.54 |
The interest coverage ratio of Nucor Corp has shown significant fluctuations over the years. The ratio was relatively stable at 6.54 for the year ended December 31, 2020 but experienced a sharp increase to 58.95 for the year ended December 31, 2021. This substantial improvement suggests that Nucor Corp's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses.
Subsequently, the interest coverage ratio continued to rise in the following years, reaching 61.47 on December 31, 2022, indicating a further strengthening of the company's ability to meet its interest obligations. However, there was a notable decline in the ratio to 26.50 on December 31, 2023, which could potentially raise concerns about Nucor Corp's ability to comfortably cover its interest payments.
Nevertheless, the interest coverage ratio rebounded significantly to 99.30 by December 31, 2024, showcasing a remarkable improvement in Nucor Corp's ability to service its interest expenses. Overall, despite some fluctuations, the trend in Nucor Corp's interest coverage ratio demonstrates the company's varying degrees of financial health and capacity to meet its interest obligations over the years.