Nucor Corp (NUE)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,859,985	3,511,705	4,651,180	5,811,260	6,235,100	6,786,540	7,616,780	9,110,560	10,437,150	11,868,120	12,382,780	10,898,030	9,295,780	6,530,303	4,003,455	2,175,987	1,320,553	1,280,752	1,340,880	1,671,452
Interest expense (ttm)	US$ in thousands	120,621	147,901	203,847	141,593	108,289	104,980	84,099	137,264	170,216	183,390	184,328	162,345	158,854	155,051	151,905	151,932	153,198	145,522	136,669	133,892
Interest coverage		23.71	23.74	22.82	41.04	57.58	64.65	90.57	66.37	61.32	64.72	67.18	67.13	58.52	42.12	26.35	14.32	8.62	8.80	9.81	12.48

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,859,985K ÷ $120,621K
= 23.71

The interest coverage ratio measures a company's ability to meet its interest obligations from its operating income. Looking at the trend in Nucor Corp's interest coverage ratio from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over the period.

Starting at 12.48 on March 31, 2020, the interest coverage ratio decreased gradually to 8.62 by December 31, 2020, indicating a slight deterioration in Nucor Corp's ability to cover interest expenses. However, the ratio then exhibited a significant improvement, reaching 67.13 by March 31, 2022. This surge continued into June 30, 2022, where the ratio was maintained at 67.18 and even peaked at 90.57 on June 30, 2023.

After this peak, the interest coverage ratio started to decline, dropping to 41.04 by March 31, 2024. The downward trend continued, with the ratio falling to 23.71 by December 31, 2024, albeit still above the levels seen in 2020. This fluctuation in the interest coverage ratio indicates variability in Nucor Corp's ability to cover its interest obligations over the period under review. Further analysis and scrutiny of the company's financial performance and debt management strategies would be necessary to understand the reasons behind these fluctuations.