Nucor Corporation produces steel and steel products at its eight mills and is a major recycler...

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Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following

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Answer 1

Answer #1

1. Return on Assets = Net Income / Average Total Assets

2016 = $900.4 / (15,223.5 + 14,327) / 2 = 0.06094 or 6%

2017 = $1380.6 / (15,841.3 + 15,223.5) / 2 = 0.0889 or 9%

2018 = $2481.1 / (17,920.6 + 15,841.3) / 2 = 0.1470 or 15%

2. Operating profit margin = Net income / Sales

2016 = $900.4 / 16,208.1 = 0.0555 or 6%

2017 = $1380.6 / 20,252.4 = 0.06817 or 7%

2018 = $2481.1 / 25,067.3 = 0.098978 or 10%

Assets Turnover = Sales / Average Total Assets

2016 = $16,208.1 / (15,223.5 + 14,327) / 2 = 0.55

2017 = $20,252.4 / (15,841.3 + 15,223.5) / 2 = 0.65

2018 = 25,067.3 / (17,920.6 + 15,841.3) / 2 = 0.74

2. Yes, Nucor's profitability is changed over the three years.

3. Rate of return on equity = Net income / Average common stockholder's equity

2016 = $900.4 / (7,849.9 + 8,254.7) / 2 = 0.055909 or 6%

2017 = 1380.6 / (8,254.7 + 9,084.8) / 2 = 0.159 or 16%

2018 = 2481.1 / (9,084.8 + 10,202.0) / 2 = 0.257 or 26%

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