Nucor Corp (NUE)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $20,940,600K
= 0.00
The debt-to-equity ratio of Nucor Corp. has exhibited a declining trend over the past five years, indicating the company's decreasing reliance on debt financing compared to equity. In 2023, the debt-to-equity ratio stood at 0.33, representing a significant reduction from the previous year's 0.36.
This downward trend suggests that Nucor has been effectively managing its debt levels relative to its equity. A lower debt-to-equity ratio indicates a stronger financial position and less financial risk for the company. It also indicates that Nucor is funding a relatively smaller portion of its operations and investments through debt, which can lead to lower interest expenses and improved financial flexibility.
Overall, the decreasing trend in Nucor's debt-to-equity ratio reflects a prudent financing strategy and a stronger balance sheet position, which may be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2023