Nucor Corp (NUE)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 4,234,310 | 4,233,790 |
| Total stockholders’ equity | US$ in thousands | 20,940,600 | 20,465,700 | 19,953,700 | 19,017,400 | 18,414,700 | 17,708,500 | 16,808,600 | 15,204,600 | 14,016,400 | 13,422,500 | 12,254,000 | 11,447,200 | 10,788,700 | 10,302,400 | 10,194,800 | 10,168,200 | 10,357,900 | 10,449,000 | 10,300,700 | 10,114,200 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.41 | 0.42 |
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 been relatively stable over the past eight quarters. The ratio has ranged from 0.33 to 0.45 during this period, indicating that the company has maintained a conservative capital structure with a reasonable balance between debt and equity financing.
A lower debt-to-equity ratio suggests that Nucor relies more on equity financing rather than debt, which can be viewed positively as it signifies lower financial risk and greater financial stability. This can be attractive to investors and creditors as it indicates a lower probability of default.
Over the quarters analyzed, there has been a slight increase in the debt-to-equity ratio from 0.33 in Q4 2023 to 0.45 in Q1 2022. This upward trend may indicate that Nucor has been gradually increasing its reliance on debt financing compared to equity financing. While an increase in the ratio may raise concerns about the company's leverage, it is crucial to assess the absolute levels of debt and equity to fully understand the financial position and risk profile of Nucor.
Overall, Nucor Corp.'s debt-to-equity ratio suggests a prudent capital structure management strategy, but it is essential for investors and stakeholders to monitor any significant changes in the ratio to evaluate the company's financial health and risk exposure.
Peer comparison
Dec 31, 2023