Operating Profit Margin
since 2005
Calculation
United States Steel Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Earnings (loss) before interest and income taxes1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 15.00% | = | 100 | × | 3,160) | ÷ | 21,065) |
| Dec 31, 2021 | 24.39% | = | 100 | × | 4,946) | ÷ | 20,275) |
| Dec 31, 2020 | -11.04% | = | 100 | × | (1,075) | ÷ | 9,741) |
| Dec 31, 2019 | -1.78% | = | 100 | × | (230) | ÷ | 12,937) |
| Dec 31, 2018 | 7.93% | = | 100 | × | 1,124) | ÷ | 14,178) |
| Dec 31, 2017 | 4.96% | = | 100 | × | 608) | ÷ | 12,250) |
| Dec 31, 2016 | -1.61% | = | 100 | × | (165) | ÷ | 10,261) |
| Dec 31, 2015 | -10.39% | = | 100 | × | (1,202) | ÷ | 11,574) |
| Dec 31, 2014 | 2.36% | = | 100 | × | 413) | ÷ | 17,507) |
| Dec 31, 2013 | -10.90% | = | 100 | × | (1,900) | ÷ | 17,424) |
| Dec 31, 2012 | 1.28% | = | 100 | × | 247) | ÷ | 19,328) |
| Dec 31, 2011 | 1.33% | = | 100 | × | 265) | ÷ | 19,884) |
| Dec 31, 2010 | -0.64% | = | 100 | × | (111) | ÷ | 17,374) |
| Dec 31, 2009 | -15.24% | = | 100 | × | (1,684) | ÷ | 11,048) |
| Dec 31, 2008 | 12.92% | = | 100 | × | 3,069) | ÷ | 23,754) |
| Dec 31, 2007 | 7.19% | = | 100 | × | 1,213) | ÷ | 16,873) |
| Dec 31, 2006 | 11.36% | = | 100 | × | 1,785) | ÷ | 15,715) |
| Dec 31, 2005 | 10.25% | = | 100 | × | 1,439) | ÷ | 14,039) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The operating profit margin demonstrates extreme volatility over the observed period, characterized by sharp cyclical swings between significant losses and periods of high profitability.
- Initial Growth and Severe Contraction (2005–2009)
- The period began with a relatively stable and positive margin, peaking at 12.92% in 2008. This was immediately followed by a precipitous decline in 2009, where the operating profit margin fell to -15.24%, representing the most significant contraction in the first decade of the series.
- Period of Marginal Stability and Recurrence of Losses (2010–2016)
- Between 2010 and 2016, the margin exhibited a pattern of instability, frequently fluctuating around the break-even point. Brief periods of low profitability in 2011 and 2012 (approximately 1.3%) were interrupted by substantial negative margins in 2013 (-10.90%) and 2015 (-10.39%), indicating a struggle to maintain operational efficiency during these years.
- Recent Volatility and Record Peaks (2017–2022)
- A recovery phase occurred in 2017 and 2018, with the margin reaching 7.93%. This trend reversed in 2019 and 2020, culminating in a margin of -11.04% by the end of 2020. However, a dramatic surge followed in 2021, with the operating profit margin reaching a historical peak of 24.39%, before moderating to 15.00% in 2022.
The correlation between net sales and operating profit suggests that profitability is highly sensitive to external market drivers rather than sales volume alone. The ability to generate an operating profit varies widely regardless of whether net sales are at their peak or trough, highlighting a high degree of operational leverage and exposure to commodity price fluctuations.
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Comparison to Competitors
United States Steel Corp., operating profit margin, long-term trends, comparison to competitors
| United States Steel Corp. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2022 | 15.00% | 30.89% |
| Dec 31, 2021 | 24.39% | 36.62% |
| Dec 31, 2020 | -11.04% | 17.16% |
| Dec 31, 2019 | -1.78% | 7.58% |
| Dec 31, 2018 | 7.93% | 25.52% |
| Dec 31, 2017 | 4.96% | 22.15% |
| Dec 31, 2016 | -1.61% | -18.83% |
| Dec 31, 2015 | -10.39% | -84.29% |
| Dec 31, 2014 | 2.36% | 0.45% |
| Dec 31, 2013 | -10.90% | 25.58% |
| Dec 31, 2012 | 1.28% | 32.28% |
| Dec 31, 2011 | 1.33% | 43.77% |
| Dec 31, 2010 | -0.64% | 47.77% |
| Dec 31, 2009 | -15.24% | 43.24% |
| Dec 31, 2008 | 12.92% | -71.42% |
| Dec 31, 2007 | 7.19% | 38.70% |
| Dec 31, 2006 | 11.36% | 49.54% |
| Dec 31, 2005 | 10.25% | 52.10% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).