Common-Size Income Statement
Quarterly Data
United States Steel Corp., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Net Sales and Related Party Sales
- Net sales consistently account for 100% by definition across all quarters. The proportion of net sales to related parties fluctuates, starting near 10% in early 2018, dipping significantly to around 4-6% during several quarters in 2020 and 2021, before rising again to roughly 10-12% by mid-2023. This suggests varying intercompany transactions that may influence consolidated revenue recognition over time.
- Cost of Sales and Gross Profit
- Cost of sales as a percentage of net sales generally exhibits a rising trend from 2018 through 2020, peaking negatively beyond 100% in mid-2020 (-108.75%), indicating cost overruns exceeding revenue in that period. Subsequently, a marked improvement is observed, with cost ratios decreasing significantly through 2021 to early 2022, reaching levels near -65% to -69%, before gradually increasing again toward 2023. Correspondingly, gross profit margins begin at low double digits in 2018, collapse into negative territory during 2020 during the peak cost period, and then recover robustly from 2021 onwards, reaching highs above 34% in late 2021 before settling around 9-17% in 2023. This pattern reflects significant volatility likely driven by commodity prices, operational changes, or market conditions.
- Selling, General and Administrative Expenses (SG&A)
- SG&A expenses remain relatively steady at approximately -2% to -3% of net sales throughout the entire period, with minor fluctuations. This indicates a consistent control over operating expenses relative to revenue, without major cost scaling or reductions.
- Depreciation, Depletion, and Amortization
- This expense trend rises gradually from around -3.4% in 2018 to a peak near -7.6% during mid-2020, then recedes to roughly -3.3% to -5% by 2023. The increased depreciation burden in 2020 may be linked to asset impairments or additions during earlier years, followed by normalization in subsequent periods.
- Earnings from Investees and Special Gains/Losses
- Earnings from investees exhibit variability, with positive contributions mostly in 2018-2019, a pronounced dip into losses during 2020, and recovery thereafter. One notable special gain is recorded in late 2021 (8.48%) related to the sale of Transtar, positively impacting results that quarter. Asset impairment charges appear sporadically between 2020 and 2023, generally negatively affecting margins but at modest levels below -5% mostly. Restructuring and other charges show periodic impacts with peaks in late 2019 and 2020 but moderate effects overall.
- Earnings Before Interest and Income Taxes (EBIT)
- EBIT margins show strong cyclical movement, peaking at 10% in late 2018, collapsing into negative territory through 2019 and worsening severely during 2020 with lows around -25%, reflecting operational difficulties or market downturns. From 2021 onwards, EBIT margins experience a remarkable recovery, exceeding 30-39% during late 2021 before moderating to mid-teens or low double digits by mid-2023. This recovery aligns with improved cost control and higher gross profit margins.
- Interest Expense and Income
- Interest expense generally declines over time from approximately -1.6% in 2018 to below -0.5% by 2023, indicating decreased debt burden or more favorable borrowing costs. Interest income remains low and stable, with a slight upward trend in 2022-2023, but remains a minor component of financial results.
- Net Interest and Other Financial Benefits (Costs)
- Net financial costs show significant volatility, with fluctuations including a notable spike to nearly -9% in early 2021, potentially due to debt extinguishment or impairments impacting finance expense. However, from 2022 forward, these net costs trend toward small positive or near neutral values, contributing some financial benefit to operations.
- Earnings Before Income Taxes and Net Earnings
- Earnings before taxes mirror EBIT trends but include the impact of financial costs, following a similar pattern of contraction into negative values during 2019-2020 and strong recovery during 2021. Net earnings demonstrate notable volatility, peaking strongly in late 2021 at over 33%, falling sharply during pandemic periods, and stabilizing with positive earnings around 4-9% in 2023. The income tax expense shows irregular patterns, including a substantial positive tax benefit in Q4 2018, moderate burdens in other periods, and occasional tax benefits coinciding with losses or restructuring.