Nucor Corp (NUE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,979,000 | 6,518,710 | 10,463,800 | 9,363,980 | 1,002,150 |
| Interest expense | US$ in thousands | 30,000 | 245,954 | 170,216 | 158,854 | 153,198 |
| Interest coverage | 99.30 | 26.50 | 61.47 | 58.95 | 6.54 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,979,000K ÷ $30,000K
= 99.30
Nucor Corp's interest coverage has shown significant fluctuations over the past five years. In December 2020, the interest coverage was 6.54, indicating the company's ability to cover its interest expenses by its earnings before interest and taxes (EBIT) was relatively low. However, there was a substantial improvement in December 2021, with the interest coverage increasing to 58.95, reflecting a significant enhancement in the company's ability to cover its interest obligations.
The trend continued positively in December 2022 and December 2024, with interest coverage ratios of 61.47 and 99.30, respectively, showcasing a robust financial position and efficient management of interest expenses. However, in December 2023, there was a slight decrease in the interest coverage to 26.50, which may indicate a temporary strain on the company's ability to cover its interest payments from its operational earnings.
Overall, the data suggests that Nucor Corp has shown a strong ability to cover its interest expenses in recent years, with only a minor dip observed in 2023. This indicates the company's resilience and prudent financial management in meeting its debt obligations.
Peer comparison
Dec 31, 2024