Nucor Corp (NUE)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 20,940,600 | 18,414,700 | 14,016,400 | 10,788,700 | 10,357,900 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $20,940,600K)
= 0.00
The debt-to-capital ratio of Nucor Corp has exhibited a generally decreasing trend over the past five years, from 0.30 in 2019 to 0.25 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments, while increasing its equity financing.
A lower debt-to-capital ratio suggests a stronger financial position and lower financial risk, as it reflects a higher proportion of the company's capital being funded by equity rather than debt. Nucor Corp's decreasing trend in the debt-to-capital ratio could indicate improved financial stability and a more conservative capital structure strategy.
Overall, the consistent decline in the debt-to-capital ratio over the years demonstrates Nucor Corp's efforts to maintain a balanced and healthy mix of debt and equity in its capital structure, which may contribute to its long-term financial sustainability and resilience to economic downturns.
Peer comparison
Dec 31, 2023