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 2012, 2013, and 2014. 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 2012, 2013, and 2014.
4. What seem to be the reasons for the change in ROCE over the three years?

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Nucor Corporation 2011 ($ in millions) Total assets Common stockholders' equity Total debt Sales Net income Interest expense Income tax rate 2012 2013 2014 $14,570.4 7,706.6 4,282.0 $14,152.1 7,885.4 3,660.1 19,429.3 593.1 162.4 0.37 15,203.3 7,910.3 4.409.9 19,052.0 585.5 146.9 0.37 15,615.9 8,075.1 4,584.4 21,105.1 815.8 169.3 0.37