Nucor Corp (NUE)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	35,340,500	32,479,200	25,823,100	20,125,400	18,344,700
Total stockholders’ equity	US$ in thousands	20,940,600	18,414,700	14,016,400	10,788,700	10,357,900
Financial leverage ratio		1.69	1.76	1.84	1.87	1.77

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $35,340,500K ÷ $20,940,600K
= 1.69

The financial leverage ratio of Nucor Corp. has been fluctuating over the past five years. The ratio decreased from 1.87 in 2020 to 1.69 in 2023, showing an improvement in the company's ability to meet its financial obligations with a lower level of debt. This decrease in the financial leverage ratio indicates that Nucor has been relying less on debt to finance its operations in recent years.

However, it is important to note that the ratio has not consistently decreased year over year, as there was an increase from 2021 to 2022. This could suggest that the company took on more debt or had lower equity levels during that period, potentially increasing its financial risk.

Overall, a decreasing trend in the financial leverage ratio is generally seen as positive, as it indicates a stronger financial position and lower debt burden. Nucor Corp. should continue to monitor and manage its financial leverage ratio to ensure a healthy balance between debt and equity financing.