Nucor(Nue) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - payables turnover
This chart shows the historical trend of payables turnover for NUE compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Payables Turnover
Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.
Interpretation:
• In '2021', NUE's payables turnover was 12.06, indicating how promptly the company pays its suppliers. Industry average for Steel/Iron Ore in '2021' stood at 5.31.
• In '2022', NUE's payables turnover was 15.43, indicating how promptly the company pays its suppliers. The increase since '2021' reflects strengthening financial performance. Industry average for Steel/Iron Ore in '2022' stood at 5.80. Industry average increased by 0.48 compared to previous year.
• In '2023', NUE's payables turnover was 14.66, indicating how promptly the company pays its suppliers. The decline from '2022' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2023' stood at 5.54. Industry average declined by 0.26 from previous year.
• In '2024', NUE's payables turnover was 13.83, indicating how promptly the company pays its suppliers. The decline from '2023' may indicate some operational or financial challenges. Industry average for Steel/Iron Ore in '2024' stood at 5.78. Industry average increased by 0.24 compared to previous year.
Overall, NUE's payables turnover has steadily improved over the past 4 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.