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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

Microsoft Excel
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).

The financial performance from 2018 to 2022 is characterized by significant volatility in profitability, primarily driven by fluctuations in the cost of sales. A sharp decline in margins occurred between 2018 and 2020, followed by a substantial recovery in 2021 and a partial normalization in 2022.

Gross Profitability and Cost of Sales
The cost of sales exhibits a volatile trend, peaking at 98.12% of net sales in 2020, which compressed the gross profit margin to its lowest point of 1.88%. Conversely, 2021 saw a significant improvement, with the cost of sales dropping to 71.68% and gross profit reaching a peak of 28.32%. By 2022, the gross profit margin settled at 20.36%, indicating a higher baseline of profitability compared to the 2018-2020 period.
Operating Expenses and Non-Recurring Items
Selling, general, and administrative expenses remained remarkably stable, fluctuating within a narrow band between 2.00% and 2.81% of net sales. Depreciation, depletion, and amortization showed an upward trend peaking in 2020 at 6.60% before receding to 3.76% by 2022. The period was also marked by episodic charges, including asset impairment charges that peaked at 2.70% of net sales in 2020 and restructuring charges that gradually declined from 2.13% in 2019 to 0.23% in 2022. A notable non-recurring gain occurred in 2021 with the sale of Transtar, contributing 2.50% to net sales.
Financial Costs and Interest Obligations
Net interest and other financial benefits experienced a transition from a consistent drag on earnings to a positive contribution. Net interest costs as a percentage of sales were negative from 2018 through 2021, reaching a high of -2.97% in 2021. However, 2022 marked a reversal, with net interest and other financial benefits turning positive at 0.47%. Interest expense specifically decreased from a peak of 2.87% of net sales in 2020 to 0.75% in 2022, suggesting a reduction in the relative burden of debt servicing.
Net Earnings Trend
Bottom-line performance mirrored the volatility of the gross margins. Net earnings attributable to the corporation swung from a profit of 7.86% in 2018 to a significant loss of 11.96% in 2020. This was followed by a sharp rebound to 20.59% in 2021, before moderating to 11.98% in 2022. The impact of income taxes fluctuated, providing a benefit to net income in 2018 and 2020, while acting as an expense in 2019, 2021, and 2022, with the tax expense reaching its highest relative impact in 2022 at 3.49% of net sales.

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