Case Study Analysis of Nucor Company

Case Study Analysis of Nucor Company
Student Name
Institutional Affiliation
Case Study Analysis of Nucor Company
2a. Interpreting Data on Exhibit 3
The financial performance of the company is summarized in Exhibit 3. The financial data shows that during the period 2011-2014, the company registered growth in terms of current assets, net sales, as well as current ratio. On the other hand, the cost of products the company sold and its current liabilities reduced. These stats show that the financial health of the company was improving. The increase in sales volumes and current assets is evidence that the company was making profits and that it was cutting down its production and operational costs. This also explains why the cost of products sold and current liabilities reduced. Reduction in the current liabilities also shows that the company was growing financially healthier and more stable, and thus reducing such expenses as loans. Such performance is due to the efficiency of the pricing and operational strategies that the company formulated and implemented during this period.
However, the performance of the company changed from 2015. The company made the lowest sales volumes and profits that it had registered over the last 5 years. The percentage of net earning sales to the net sales that the company registered in 2015 was the lowest that it had registered in the last five years. This implies that the company was not financially healthy. Reduced sales volumes and profitability indicate that the company was not operating at the same level it had been, and this signifies the need for more efficient strategies to improve the financial health of the company. furthe...