To "hit the nail on the head" means to describe or analyze a situation exactly right.
The exact origin of this phrase is unknown but most certainly originated with carpentry as clearly a carpenter, or anyone building something, must hit the head of the nail with the hammer. This phrase dates back hundreds of year. A book by William Cunningham, called "The Cosmographical Glasses", dated 1559, reads: "You hit the nail on the head (as the saying is)." Clearly this phrase was already well known by this date.
Use Example - Joan's asking the CEO about layoffs really hit the nail on the head as to the employees' concerns.
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