Nucor Corp (NUE)

Financial leverage 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
Total assets	US$ in thousands	35,340,500	34,267,800	33,379,900	32,246,400	32,479,200	32,072,700	31,668,500	28,632,900	25,823,100	24,949,500	22,995,600	21,172,400	20,125,400	19,519,300	18,766,000	17,866,100	18,344,700	18,506,300	18,126,500	18,086,700
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
Financial leverage ratio		1.69	1.67	1.67	1.70	1.76	1.81	1.88	1.88	1.84	1.86	1.88	1.85	1.87	1.89	1.84	1.76	1.77	1.77	1.76	1.79

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 exhibited a declining trend over the quarters, from 1.76 in Q4 2022 to 1.69 in Q4 2023. This indicates that the company's reliance on debt to finance its operations has decreased over the period. However, the ratio remained relatively stable around 1.67 to 1.70 from Q1 2023 to Q3 2023 before decreasing again.

The decreasing trend in the financial leverage ratio suggests that Nucor Corp is becoming less dependent on debt financing, which can be considered a positive sign as it indicates a stronger financial position and reduced risk of financial distress. It implies that the company may be managing its debt levels prudently and potentially improving its profitability and cash flow generation.

Overall, the decreasing financial leverage ratio of Nucor Corp reflects a more conservative financial structure with a lower debt burden, which could contribute to the company's long-term financial stability and resilience.