Return on Equity (ROE)
since 2005
Calculation
United States Steel Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings (loss) attributable to United States Steel Corporation1 | ÷ | Total United States Steel Corporation stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 24.70% | = | 100 | × | 2,524) | ÷ | 10,218) |
| Dec 31, 2021 | 46.33% | = | 100 | × | 4,174) | ÷ | 9,010) |
| Dec 31, 2020 | -30.77% | = | 100 | × | (1,165) | ÷ | 3,786) |
| Dec 31, 2019 | -15.40% | = | 100 | × | (630) | ÷ | 4,092) |
| Dec 31, 2018 | 26.53% | = | 100 | × | 1,115) | ÷ | 4,202) |
| Dec 31, 2017 | 11.66% | = | 100 | × | 387) | ÷ | 3,320) |
| Dec 31, 2016 | -19.35% | = | 100 | × | (440) | ÷ | 2,274) |
| Dec 31, 2015 | -67.41% | = | 100 | × | (1,642) | ÷ | 2,436) |
| Dec 31, 2014 | 2.68% | = | 100 | × | 102) | ÷ | 3,799) |
| Dec 31, 2013 | -49.94% | = | 100 | × | (1,672) | ÷ | 3,348) |
| Dec 31, 2012 | -3.57% | = | 100 | × | (124) | ÷ | 3,477) |
| Dec 31, 2011 | -1.51% | = | 100 | × | (53) | ÷ | 3,500) |
| Dec 31, 2010 | -12.52% | = | 100 | × | (482) | ÷ | 3,851) |
| Dec 31, 2009 | -29.96% | = | 100 | × | (1,401) | ÷ | 4,676) |
| Dec 31, 2008 | 43.15% | = | 100 | × | 2,112) | ÷ | 4,895) |
| Dec 31, 2007 | 15.89% | = | 100 | × | 879) | ÷ | 5,531) |
| Dec 31, 2006 | 31.48% | = | 100 | × | 1,374) | ÷ | 4,365) |
| Dec 31, 2005 | 27.38% | = | 100 | × | 910) | ÷ | 3,324) |
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 analysis of return on equity (ROE) between 2005 and 2022 reveals extreme volatility, characterized by cyclical swings between significant profitability and substantial losses. The ROE fluctuations are primarily driven by high variance in net earnings, while stockholders' equity remained relatively stable for the first fifteen years before expanding rapidly in the final two years of the period.
- Initial High-Growth Phase (2005–2008)
- A period of strong financial performance is observed from 2005 to 2008, with ROE reaching a peak of 43.15% in 2008. This was supported by steadily increasing net earnings, which rose from 910 million USD in 2005 to 2,112 million USD in 2008, despite a moderate increase in the equity base.
- Prolonged Period of Negative Returns (2009–2016)
- A significant downturn began in 2009, marking the start of a period characterized by frequent net losses and negative ROE. The most severe contraction occurred in 2015, where ROE dropped to -67.41%, corresponding with a net loss of 1,642 million USD and the lowest recorded level of stockholders' equity at 2,436 million USD. A brief, marginal recovery occurred in 2014 with an ROE of 2.68%, but this did not establish a sustainable trend at the time.
- Intermittent Recovery and Volatility (2017–2020)
- Profitability returned in 2017 and 2018, with ROE climbing to 11.66% and 26.53% respectively. However, this recovery was short-lived, as the company returned to negative territory in 2019 and 2020, with ROE falling to -30.77% by the end of 2020, driven by a net loss of 1,165 million USD.
- Recent Capital Expansion and Profitability Surge (2021–2022)
- The most recent data indicates a sharp reversal in performance. In 2021, net earnings surged to 4,174 million USD, driving ROE to 46.33%. This coincided with a massive expansion of stockholders' equity, which jumped from 3,786 million USD in 2019 to 10,218 million USD by 2022. Despite the continued growth in the equity base, ROE remained strong at 24.70% in 2022, supported by net earnings of 2,524 million USD.
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Comparison to Competitors
United States Steel Corp., ROE, long-term trends, comparison to competitors
| United States Steel Corp. | Freeport-McMoRan Inc. | |
|---|---|---|
| Dec 31, 2022 | 24.70% | 22.30% |
| Dec 31, 2021 | 46.33% | 30.80% |
| Dec 31, 2020 | -30.77% | 5.89% |
| Dec 31, 2019 | -15.40% | -2.57% |
| Dec 31, 2018 | 26.53% | 26.56% |
| Dec 31, 2017 | 11.66% | 22.78% |
| Dec 31, 2016 | -19.35% | -68.65% |
| Dec 31, 2015 | -67.41% | -156.31% |
| Dec 31, 2014 | 2.68% | -7.15% |
| Dec 31, 2013 | -49.94% | 12.70% |
| Dec 31, 2012 | -3.57% | 17.33% |
| Dec 31, 2011 | -1.51% | 29.15% |
| Dec 31, 2010 | -12.52% | 34.68% |
| Dec 31, 2009 | -29.96% | 30.15% |
| Dec 31, 2008 | 43.15% | -191.70% |
| Dec 31, 2007 | 15.89% | 16.33% |
| Dec 31, 2006 | 31.48% | 59.57% |
| Dec 31, 2005 | 27.38% | 54.00% |
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).
Comparison to Industry (Materials)
United States Steel Corp., ROE, long-term trends, comparison to industry (materials)
| United States Steel Corp. | Materials | |
|---|---|---|
| Dec 31, 2022 | 24.70% | 16.42% |
| Dec 31, 2021 | 46.33% | 16.54% |
| Dec 31, 2020 | -30.77% | 8.40% |
| Dec 31, 2019 | -15.40% | 5.74% |
| Dec 31, 2018 | 26.53% | 12.42% |
| Dec 31, 2017 | 11.66% | 27.34% |
| Dec 31, 2016 | -19.35% | -11.75% |
| Dec 31, 2015 | -67.41% | -73.64% |
| Dec 31, 2014 | 2.68% | 5.03% |
| Dec 31, 2013 | -49.94% | 17.62% |
| Dec 31, 2012 | -3.57% | 21.12% |
| Dec 31, 2011 | -1.51% | 29.47% |
| Dec 31, 2010 | -12.52% | 30.11% |
| Dec 31, 2009 | -29.96% | 27.87% |
| Dec 31, 2008 | 43.15% | -82.36% |
| Dec 31, 2007 | 15.89% | 18.96% |
| Dec 31, 2006 | 31.48% | 33.59% |
| Dec 31, 2005 | 27.38% | 29.22% |
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).