**Nucor Corporation Financial Data Overview (2015-2018)**Nucor Corporation manufactures steel and steel products and is a major recycler of scrap metal across its eight mills. Below are financial details for Nucor spanning four years, highlighting the one-time effect of the Tax Cuts and Jobs Act, which increased 2017's net income by $175.2 million.**Financial Data Summary ($ in millions):**| | 2015 | 2016 | 2017 | 2018 ||---------------------|-----------|-----------|-----------|-----------|| Total assets | $14,327.0 | $15,223.5 | $15,841.3 | $17,920.6 || Common stockholders’ equity | 7,849.9 | 8,254.7 | 9,084.8 | 10,202.0 || Total debt | 4,388.5 | 4,357.1 | 3,795.1 | 4,291.1 || Sales | 16,208.1 | 16,208.1 | 20,252.4 | 25,067.3 || Net income | 900.4 | 1,380.6 | 2,481.1 || Interest expense | 169.2 | 173.2 | 135.5 || Assumed marginal income tax rate | 0.37 | 0.37 | 0.23 |_Source: Nucor Form 10-Ks for 2015–2018._**Analysis Requirements:**The analysis requires eliminating the one-time net income effect from 2017's results due to the Tax Cuts and Jobs Act.1. **Calculate Nucor’s ROA (Return on Assets) for 2016, 2017, and 2018.**2. **Decompose ROA into operating profit margin and asset turnover components.**3. **Analyze changes in Nucor’s profitability over the three-year period.**4. **Calculate the rate of return on common stockholders’ equity for 2016, 2017, and 2018.**Complete the solutions by entering your responses in each section:**Calculation Table:**

Name: **Nucor Corporation Financial Data Overview (2015-2018)**Nucor Corpor
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Description: **Nucor Corporation Financial Data Overview (2015-2018)**Nucor Corporation manufactures steel and steel products and is a major recycler of scrap metal across its eight mills. Below are financial details for Nucor spanning four years, highlighting t

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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. In 2017, Nucor's net income was higher by $175.2 million because of a one-time effect of the Tax Cuts and Jobs Act. Nucor Corporation ($ in millions) 2015 2016 2017 2018 $15,841.3 9,084.8 3,795.1 20,252.4 1,380.6 Total assets $14,327.0 7,849.9 4,388.5 $15,223.5 8,254.7 4,357.1 16,208.1 $17,920.6 10,202.0 4,291.1 25,067.3 2,481.1 Common stockholders' equity Total debt Sales Net income 900.4 Interest expense 169.2 173.6 135.5 Assumed marginal income tax rate 0.37 0.37 0.23 Source: Nucor Form 10-Ks for 2015-2018. Required: In the following analyses, eliminate the one-time net income effect of the Tax Cuts and Jobs Act on 2017's results. 1. Calculate Nucor's ROA for 2016, 2017, and 2018. 2. Decompose ROA into operating profit margin and asset turnover components. 3. Has Nucor's profitability changed over the three years? 4. Calculate the rate of return on common stockholders' equity for 2016, 2017, and 2018.

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. In 2017, Nucor's net income was higher by $175.2 million because of a one-time effect of the Tax Cuts and Jobs Act. Nucor Corporation ($ in millions) 2015 2016 2017 2018 $15,841.3 9,084.8 3,795.1 20,252.4 1,380.6 Total assets $14,327.0 7,849.9 4,388.5 $15,223.5 8,254.7 4,357.1 16,208.1 $17,920.6 10,202.0 4,291.1 25,067.3 2,481.1 Common stockholders' equity Total debt Sales Net income 900.4 Interest expense 169.2 173.6 135.5 Assumed marginal income tax rate 0.37 0.37 0.23 Source: Nucor Form 10-Ks for 2015-2018. Required: In the following analyses, eliminate the one-time net income effect of the Tax Cuts and Jobs Act on 2017's results. 1. Calculate Nucor's ROA for 2016, 2017, and 2018. 2. Decompose ROA into operating profit margin and asset turnover components. 3. Has Nucor's profitability changed over the three years? 4. Calculate the rate of return on common stockholders' equity for 2016, 2017, and 2018.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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