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) Total assets Common stockholders' equity Total debt Sales Net income Interest expense Assumed marginal income tax rate 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. Complete this question by entering your answers in the tabs below. ROA Required 2 Required 3 2016 2015 $14,327.0 7,849.9 4,388.5 Required 1 Calculate Nucor's ROA for 2016, 2017, and 2018. (Do not round intermediate calculations. Round your answers to 2 decimal places.) % 2017 Required 4 2017 2016 $15,223.5 $15,841.3 8,254.7 9,084.8 4,357.1 3,795.1 16,208.1 20,252.4 1,380.6 173.6 0.37 96 900.4 169.2 0.37 2018 %6 2018 $17,928.6 10,202.0 4,291.1 25,067.3 2,481.1 135.5 0.23
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) Total assets Common stockholders' equity Total debt Sales Net income Interest expense Assumed marginal income tax rate 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. Complete this question by entering your answers in the tabs below. ROA Required 2 Required 3 2016 2015 $14,327.0 7,849.9 4,388.5 Required 1 Calculate Nucor's ROA for 2016, 2017, and 2018. (Do not round intermediate calculations. Round your answers to 2 decimal places.) % 2017 Required 4 2017 2016 $15,223.5 $15,841.3 8,254.7 9,084.8 4,357.1 3,795.1 16,208.1 20,252.4 1,380.6 173.6 0.37 96 900.4 169.2 0.37 2018 %6 2018 $17,928.6 10,202.0 4,291.1 25,067.3 2,481.1 135.5 0.23
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 3PA: Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net...
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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. 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)
Total assets
Common stockholders' equity
Total debt
Sales
Net income
Interest expense
Assumed marginal income tax rate
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.
Complete this question by entering your answers in the tabs below.
ROA
Required 2 Required 3
2016
Required 1
Calculate Nucor's ROA for 2016, 2017, and 2018. (Do not round intermediate calculations. Round your answers to 2 decimal
places.)
%
2017
2015
$14,327.0
7,849.9
4,388.5
Required 4
96
2017
2016
$15,223.5 $15,841.3
8,254.7
9,084.8
4,357.1
3,795.1
16,208.1
20,252.4
1,380.6
173.6
0.37
2018
< Required 1
900.4
169.2
0.37
96
2018
$17,928.6
10,202.0
4,291.1
25,067.3
2,481.1
135.5
0.23
Required 2 >
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