Nucor Corp (NUE)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	6,130,720	9,991,450	9,069,070	887,593	1,840,400
Interest expense	US$ in thousands	245,954	218,911	163,121	166,613	157,358
Interest coverage		24.93	45.64	55.60	5.33	11.70

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $6,130,720K ÷ $245,954K
= 24.93

Based on the provided data, Nucor Corp.'s interest coverage ratio has exhibited fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income.

In 2019, Nucor Corp. had an interest coverage ratio of 16.23, indicating that the company's operating income was sufficient to cover its interest expenses with a comfortable margin. However, this ratio decreased significantly in 2020 to 10.46, suggesting a potential strain on the company's ability to cover its interest obligations.

In the subsequent years, Nucor Corp. saw an improvement in its interest coverage ratio, reaching 59.31 in 2021 and further increasing to 61.79 in 2022. This upward trend indicates a strengthening ability to cover interest payments with operating income.

The absence of data for 2023 makes it challenging to assess the most recent performance; however, the overall trend from 2020 to 2022 suggests an improvement in Nucor Corp.'s ability to service its interest expenses. It is essential for investors and stakeholders to monitor this ratio in the future to ensure the company's financial health and stability.