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 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.