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.


Required:
1. Calculate Nucor€™s ROA for Year 2, Year 3, and Year 4. Decompose ROA into operating profit margin and asset turnover components.
2. Has Nucor€™s profitability changed over the three years? If so, how?
3. Calculate the rate of return on common stockholders€™ equity for Year 2, Year 3, and Year 4.
4. What seem to be the reasons for the change in ROCE over the threeyears?

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Nucor Corporation ($ in thousands) Year I Year 2 Year 3 Year 4 Total assets Common stockholders' equity Sales Net income Interest expense Income tax rate $3,729,848 2,262,248 $3,721.788 2,130,952 4,756,521 310,908 22,449 0.37 $3,759,348 2,201,460 4,333,707 12,961 22,002 0.37 S4,381,001 2,322,989 4,801,776 162,080 22,918 0.296