Nucor Corporation produces steel and steel products at its eight mills and is a major recycler...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Nucor for four years. Nucor Corporation (S in millions) 2011 2012 2013 2014 $14,570.4 7,706.6 4,282.0 $14,152.1 7,885.4 3,660.1 19,429.3 $15,203.3 7,910.3 4,409.9 19,052.0 $15,615.9 8,075.1 4,584.4 21,105.1 815.8 169.3 Total assets Common stockholders' equity Total debt Sales Net income 593.1 585.5 Interest expense Income tax rate 162.4 146.9 0.37 0.37 0.37 Required: 1. Calculate Nucor's ROA for 2012, 2013, and 2014. Decompose ROA into operating profit margin and asset turnover components. 2. Has Nucor's profitability changed over the three years? 3. Calculate the rate of return on common stockholders' equity for 2012, 2013, and 2014. Nucor Corporation produces steel and steel products at its eight mills and is a major recycler of scrap metal. The following data relate to Nucor for four years. Nucor Corporation (S in millions) 2011 2012 2013 2014 $14,570.4 7,706.6 4,282.0 $14,152.1 7,885.4 3,660.1 19,429.3 $15,203.3 7,910.3 4,409.9 19,052.0 $15,615.9 8,075.1 4,584.4 21,105.1 815.8 169.3 Total assets Common stockholders' equity Total debt Sales Net income 593.1 585.5 Interest expense Income tax rate 162.4 146.9 0.37 0.37 0.37 Required: 1. Calculate Nucor's ROA for 2012, 2013, and 2014. Decompose ROA into operating profit margin and asset turnover components. 2. Has Nucor's profitability changed over the three years? 3. Calculate the rate of return on common stockholders' equity for 2012, 2013, and 2014.
Expert Answer:
Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
Students also viewed these finance questions
-
Net sales revenue, net income, and common stockholders equity for Atkinson Mission Corporation, a manufacturer of contact lenses, follow for a four-year period. Requirements 1. Compute trend analyses...
-
Below is a partial balance sheet of WOU Berhad The company declared a 2 for 1 stock split. i) Calculate the new par value. ii) Calculate the new numbers of share outstanding. Common stock (RM 2)...
-
Yogi expects to produce 1,700 units in January and 2,160 units in February. The company budgets four pounds per unit of direct materials at a cost of $45 per pound. Indirect materials are...
-
Which of these is NOT one of the validity conditions for a t-test for the slope of a regression line? A. We should have a large sample size, typically n 20. B. The scatterplot of the sample data...
-
Explain why a cooperative could not claim to be a syndicate.
-
Given the two degree of freedom system shown in Fig. P4.3, complete the following. (a) Write the equations of motion in matrix form. (b) Write the system characteristic equation using Laplace...
-
The capital structure of Audiology Associates, Inc., at December 31, 2007 , included 5,000 shares of \(\$ 2\) preferred stock and 100,000 shares of common stock. Common shares outstanding during 2008...
-
The water clock (clepsydra) shown in Fig. P3.101 is an ancient device for measuring time by the falling water level in a large glass container. The water slowly drains out through a small hole in the...
-
Eagle Corporation Stockholders' Equity section includes the following information: Common Stock $ 10,000 Paid-in Capital in Excess of Par-Common 4,000 Retained Earnings 6,700 Preferred Stock 8,000...
-
A corporation owns a chain of several hundred gasoline stations on the eastern seaboard. The marketing director wants to test a proposed marketing campaign by running ads on some local television...
-
The population of a certain type of berry bush in a conservation area is represented by the function p(t)=3(16t+50t3)3p(t)=(16t+50t3)33 , where pp is the number of berry bushes and tt is time, in...
-
Two types of investment accounts are an insurer's general account and separate account. Consider the following customers of the Aurora Insurance Company: Benjamin Fripp owns a traditional life...
-
Case Study/Problem 1 (75 points) Knotsberry Manufacturing, Inc.: Activity-Based Costing Versus Volume-Based Costing Knotsberry Manufacturing, Inc. manufactures cooling and heating coils for several...
-
In the middle of next year, ABC Ltd will need to borrow $20m from the market. They are going to issue bills, but are worried that the rates may increase by next year. Explain to ABC Ltd how you can...
-
How does the author address the complexities of intersectionality in their examination of societal structures ?
-
Solve for x. 2+ In(x-5)=5
-
A world-class runner can run long distances at a pace of 12 km/hour. That runner expends 740 kilocalories of energy per hour. What's the power (in Watts [W]) the runner is exerting while running?...
-
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the...
-
The Naples Corp. incurred $2,500,000 of research cost and $1,700,000 of development cost during 2016. Required a. Determine the amount of expense recognized on the 2016 income statement assuming...
-
Danny Bell started Bell Company on January 1, 2016. The company experienced the following events during its first year of operation: 1. Earned $3,000 of cash revenue for performing services. 2....
-
In 2013 and 2012 Sears Holding Corporation reported net losses and negative cash flows from operating activities. Using the companys Form 10-K for the fiscal year ended February 1, 2014 (2013),...
-
Using the fourth-order Runge-Kutta method, solve Problem 11.15. Data From Problem 11.15:- Using the second-order Runge-Kutta method, solve the differential equation \(\ddot{x}+1000 x=0\) with the...
-
Using the central difference method, find the response of the two-degree-of-freedom system shown in Fig. 11.2 when \(c=2, F_{1}(t)=0, F_{2}(t)=10\). Figure 11.2:- X1(t) -x2(t) F(1) k=2 -F2(t) k = 4...
-
Using the central difference method, find the response of the system shown in Fig. 11.2 when \(F_{1}(t)=10 \sin 5 t\) and \(F_{2}(t)=0\). Figure 11.2:- X1(t) -x2(t) F(1) k=2 -F2(t) k = 4 k2=6 00000...
Study smarter with the SolutionInn App