Stock Analysis on Net
Stock Analysis on Net

United States Steel Corp. (NYSE:X)

This company has been moved to the archive! The financial data has not been updated since July 28, 2023.

Common-Size Income Statement 

United States Steel Corp., common-size consolidated income statement

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net sales 90.78 93.53 89.98 88.94 89.98
Net sales to related parties 9.22 6.47 10.02 11.06 10.02
Net sales 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales -79.64 -71.68 -98.12 -93.39 -86.79
Gross profit 20.36% 28.32% 1.88% 6.61% 13.21%
Selling, general and administrative expenses -2.00 -2.10 -2.81 -2.23 -2.37
Depreciation, depletion and amortization -3.76 -3.90 -6.60 -4.76 -3.67
Earnings (loss) from investees 1.15 0.84 -1.20 0.61 0.43
Gain on sale of Transtar 0.00 2.50 0.00 0.00 0.00
Asset impairment charges -0.77 -1.35 -2.70 0.00 0.00
Restructuring and other charges -0.23 -0.63 -1.42 -2.13 0.00
Gain on equity investee transactions 0.03 0.55 0.32 0.00 0.27
Net gains on sale of assets 0.06 0.03 1.53 0.01 0.04
Other gains (losses), net 0.17 0.14 -0.03 0.12 0.02
Earnings (loss) before interest and income taxes 15.00% 24.39% -11.04% -1.78% 7.93%
Interest expense -0.75 -1.54 -2.87 -1.10 -1.18
Interest income 0.21 0.02 0.07 0.13 0.16
Loss on debt extinguishment 0.00 -1.44 0.00 0.00 -0.69
Foreign currency net gain (loss) -0.05 -0.08 0.15 0.13 0.13
Amended Credit Agreement -0.02 -0.03 -0.03 -0.04 -0.04
USSK Credit Facility -0.01 -0.02 -0.02 -0.01 -0.02
Other -0.02 -0.02 0.22 -0.08 -0.02
Financial costs -0.06% -0.07% 0.16% -0.12% -0.08%
Amortization of discounts and deferred financing costs -0.04 -0.07 -0.15 -0.05 -0.06
Other financial benefits (costs) -0.15% -0.23% 0.16% -0.05% 0.00%
Net periodic benefit income (costs), other than service cost 1.17 0.22 0.26 -0.70 -0.49
Net interest and other financial benefits (costs) 0.47% -2.97% -2.38% -1.72% -2.20%
Earnings (loss) before income taxes 15.47% 21.43% -13.42% -3.49% 5.73%
Income tax (expense) benefit -3.49 -0.84 1.46 -1.38 2.14
Net earnings (loss) 11.98% 20.59% -11.96% -4.87% 7.86%
Net earnings attributable to noncontrolling interests 0.00 0.00 0.00 0.00 0.00
Net earnings (loss) attributable to United States Steel Corporation 11.98% 20.59% -11.96% -4.87% 7.86%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Net Sales
Net sales consistently accounted for 100% across all periods, with the portion of net sales to related parties fluctuating between 6.47% and 11.06%, showing a slight reduction in 2021 followed by a moderate increase in 2022. Overall, net sales as a percentage of net sales fluctuated between approximately 89% and 94%, reaching a peak in 2021.
Cost of Sales and Gross Profit
The cost of sales as a percentage of net sales exhibited significant volatility. It increased from -86.79% in 2018 to a peak of -98.12% in 2020, before sharply decreasing to -71.68% in 2021 and then rising to -79.64% in 2022. Correspondingly, gross profit experienced a decline from 13.21% in 2018 to a low of 1.88% in 2020, followed by a substantial recovery up to 28.32% in 2021 and a subsequent decrease to 20.36% in 2022. This pattern suggests a challenging cost environment culminating in 2020, with an improved profitability margin in 2021 and a partial contraction thereafter.
Selling, General and Administrative Expenses (SG&A) and Depreciation
SG&A expenses remained relatively stable as a percentage of net sales, fluctuating narrowly between -2.81% and -2%. Depreciation, depletion, and amortization showed more variability, ranging from a low of -3.67% in 2018 to a high of -6.6% in 2020, and then declining again to levels near -3.76% by 2022. This indicates a spike in depreciation expense during 2020 followed by normalization in subsequent years.
Earnings from Investees and Gains on Asset Sales
Earnings (loss) from investees fluctuated notably, from positive values around 0.43%-0.61% in early years to a negative -1.2% in 2020, recovering positively to 1.15% by 2022. Gains on sale of assets and equity investee transactions were occasional and sporadic, with notable recognition of 2.5% gain on sale of Transtar in 2021 and varied minor gains in other periods, reflecting occasional non-recurring income components.
Asset Impairment and Restructuring Charges
Asset impairment charges and restructuring costs became prominent starting in 2020, with impairment charges peaking at -2.7% in 2020 and declining to -0.77% in 2022. Restructuring charges also showed a downward trend from -2.13% in 2019 to -0.23% in 2022. This indicates active cost management and asset write-down efforts in the earlier part of the period, tapering off towards the end.
Earnings Before Interest and Taxes (EBIT)
EBIT experienced sharp fluctuations, turning negative in 2019 and 2020 (-1.78% and -11.04%, respectively), followed by a strong recovery to 24.39% in 2021 and a decrease to 15% in 2022. This trend suggests substantial operational challenges culminating in 2020, followed by significant improvement in 2021, with sustained but reduced profitability in 2022.
Interest and Financial Costs
Interest expenses showed a declining trend from -1.18% in 2018 to -0.75% in 2022, indicating reduced interest burden relative to sales. Interest income remained low but showed slight recovery in 2022. Other financial costs fluctuated but generally remained small as a proportion of net sales. Net interest and other financial benefits (costs) became positive in 2022 (0.47%) after negative results in prior years.
Earnings Before and After Taxes
Earnings before income taxes followed the EBIT pattern with losses in 2019 and 2020 (-3.49% and -13.42%, respectively) and positive earnings thereafter, reaching 21.43% in 2021 and 15.47% in 2022. Income tax expense exhibited volatility, with positive tax expense in 2022 (-3.49%) contrasting with tax benefits in 2020 (1.46%), likely linked to loss carryforwards or tax adjustments. Net earnings mirrored these trends, showing net losses in 2019 and 2020, followed by recovery to 20.59% in 2021 and 11.98% in 2022.
Summary of Observations
The data reveals a period of operational and financial stress peaking in 2020, characterized by high costs of sales, asset impairments, and losses before tax and net earnings. This was followed by a strong recovery in 2021, driven by improved gross margins and operational earnings, as well as notable gains on asset sales. Although profitability moderated in 2022, it remained positive and substantially better than the trough years. Financial costs declined over the period, contributing positively to net earnings in the latest year. Restructuring and impairment activities diminished over time, indicating stabilization. Overall, the company experienced significant volatility in profitability and cost structure, reflecting cyclical or industry-specific challenges with a marked rebound in recent years.