Nucor Corp (NUE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.23 | 0.23 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.29 | 0.30 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.41 | 0.42 |
| 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 |
Nucor Corp.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio measures the percentage of the company's assets that are financed by debt. Nucor Corp.'s debt-to-assets ratio has remained relatively stable around the 0.20 range in recent quarters, indicating that approximately 20% of the company's assets are funded by debt. This suggests that Nucor Corp. has a strong asset base relative to its debt levels.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the proportion of the company's capital structure that is funded by debt. Nucor Corp.'s debt-to-capital ratio has also shown consistency around the 0.25 mark, indicating that 25% of the company's capital is financed by debt. This suggests a balanced capital structure with a moderate reliance on debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio shows the relationship between the amount of debt and the shareholders' equity in the company. Nucor Corp.'s debt-to-equity ratio has ranged from 0.33 to 0.45 over the past quarters, indicating that the company has gradually increased its debt levels relative to equity. Although the ratio is within a reasonable range, the increasing trend warrants monitoring to ensure sustained financial stability.
4. Financial leverage ratio: The financial leverage ratio measures the extent to which the company is using debt to finance its operations. Nucor Corp.'s financial leverage ratio has exhibited fluctuations but generally remains within the range of 1.67 to 1.88. The variations in this ratio suggest changes in the company's capital structure and borrowing patterns, which may impact its financial risk and flexibility.
Overall, Nucor Corp.'s solvency ratios indicate a prudent approach to managing debt levels and maintaining a balanced capital structure. However, the slight upward trend in debt-to-equity ratio highlights the importance of continuous monitoring and strategic management of the company's long-term financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 24.93 | 27.11 | 31.27 | 36.82 | 45.64 | 56.38 | 62.34 | 63.68 | 55.60 | 39.51 | 24.09 | 12.64 | 5.33 | 5.10 | 5.75 | 7.76 | 11.70 | 15.78 | 18.63 | 21.74 |
The interest coverage ratio for Nucor Corp. has exhibited fluctuating trends over the past eight quarters. In Q4 2023, the interest coverage ratio was not provided (denoted by "—"), possibly due to specific financial reporting reasons.
In Q3 2023, the interest coverage ratio was high at 248.29, indicating that Nucor Corp. had substantial earnings available to cover its interest expenses. This was a significant improvement from the previous quarter's figure of 91.42 in Q2 2023.
While the interest coverage ratio remained above 60 in the preceding quarters of 2022, there was a slight decrease from Q2 (67.60) to Q3 (64.96) and then a marginal increase in Q4 (61.79). This trend suggests varying levels of earnings available to cover interest payments during that period.
It is essential to note that a high interest coverage ratio indicates a company's ability to comfortably meet its interest obligations with its operating income. However, fluctuations in this ratio over time may indicate changes in the company's profitability or debt levels, warranting further analysis to understand the underlying reasons for these fluctuations and their potential impact on Nucor Corp.'s financial health and stability.