Nucor is an American steel producing company. This company produces hot, and cold rolled steel, steel joists, and metal buildings. It is a large capacity steel producer. Nucor is the biggest recycler of steel scraps in America. They melt steel scraps in large furnaces to make steel. The company’s steel products are sold to manufacturers, fabricators, and steel service companies. They also have subsidiaries that fabricate rebar for highways, bridges and other types of a construct. Nucor is known for being fiscally sound and effectively managing its return on capital. Nucor operates in three separate market segments that are steel mills, steel products, and raw materials. The steel mills use scrap steel to utilize the most modern steel making …show more content…
However, the cost of products was 14,182,215 down from 15,325,386 in 2015, and interest expense was 169,244 was also down from 2015. The savings from the other categories’ absorbed the SG&E increase to produce the increase in the return on capital. The increase in the SG&E margin reflected in the higher profit margins for 2016. Nucor’s total debt to equity is 55.29%. The letters of credit total are $41.2 million down from $58 million in 2015. Their obligations include worker’s compensation, utilities deposits and credit arrangements. The company’s decrease in total debt to equity is great for continued profitability for years to come. Nucor’s total revenue reported in 2016 was $16,208,122. The revenue is down by 1% percent from last year because the average sales price decreased by 8% from 2015. However, the tons shipped to outside customers increased by 7% from 22.7 million tons in 2015 to 24.3 million tons in 2016. The net sales for the steel mills segment increased 2% in 2016 due to an 11% increase in total tons shipped to outside customers. The overall steel market conditions remained challenging, but volumes increased in 2016 compared to 2015 for all product