United States Steel Corp. (NYSE:X)

The financial data reveals several notable trends over the five-year period.

Net Operating Profit After Taxes (NOPAT)

The NOPAT exhibits significant volatility across the years. Starting with a positive value of 893 million USD at the end of 2018, it declined sharply to negative figures in 2019 (-121 million USD) and further deteriorated in 2020 to -1095 million USD. This negative performance reversed dramatically in 2021 with a substantial increase to 4449 million USD, followed by a decrease to 3060 million USD in 2022. The trend indicates periods of considerable operational challenges followed by a strong recovery.

Cost of Capital

The cost of capital displayed moderate fluctuations. It was highest in 2018 at 18.57%, declined to a low of 11.16% in 2019, then increased gradually to 15.17% in 2020, 17.24% in 2021, and reaching 18.37% in 2022. This pattern suggests changing market or company-specific risks affecting the cost of financing over time.

Invested Capital

Invested capital showed a steady upward trend throughout the period analyzed, rising from 6762 million USD in 2018 to 12723 million USD by the end of 2022. The incremental increases were consistent year-over-year, with notable acceleration from 2020 onwards, indicating increased asset base or operational expansion.

Economic Profit

Economic profit, which reflects the value created above the cost of capital, was negative for the first three years, registering -363 million USD in 2018, worsening to -996 million USD in 2019, and reaching a low point at -2403 million USD in 2020. A significant turnaround occurred in 2021, with economic profit becoming positive at 2321 million USD, though it declined again to 722 million USD in 2022. This trend aligns with the fluctuating NOPAT and suggests that economic value creation was initially constrained but improved markedly before partial contraction.

In summary, the data highlights a period of operational and economic difficulty culminating in 2020, followed by a pronounced recovery phase in 2021 and a slight moderation in 2022. The growth in invested capital suggests ongoing investment or expansion, while cost of capital movements may reflect evolving risk perceptions. The contrasting patterns between NOPAT and economic profit emphasize the impact of both operational performance and capital costs on value creation.

The financial data over the analyzed periods exhibit notable fluctuations in profitability metrics for the entity. The net earnings attributable to the company reveal a volatile trajectory, characterized by a significant loss phase between 2019 and 2020, followed by a pronounced recovery and peak in 2021, and a subsequent decrease in 2022, though remaining positive.

Net Earnings (Loss) Attributable

In 2018, the company reported net earnings amounting to 1,115 million US dollars, followed by a sharp decline to a loss of 630 million in 2019. This adverse trend intensified in 2020 with a deeper loss of 1,165 million. The year 2021 marked a substantial turnaround with net earnings reaching 4,174 million, representing the highest value in the dataset. In 2022, earnings declined to 2,524 million, which, despite being lower than the previous year, remained robust and positive.

Net Operating Profit After Taxes (NOPAT)

The NOPAT values mirror the net earnings trend closely, confirming the operational profitability challenges faced during 2019 and 2020. In 2018, NOPAT was recorded at 893 million US dollars, declining sharply to a negative 121 million in 2019, and further deteriorating to a negative 1,095 million in 2020. A significant recovery occurred in 2021, with NOPAT peaking at 4,449 million. Although there was a decrease in 2022 to 3,060 million, the figure remained strongly positive, indicative of sustained operational improvement relative to the loss years.

Overall, the data indicate a period of financial stress and operational difficulty during 2019 and 2020, likely reflective of external or internal challenges during those years. The strong rebound in 2021 signifies effective recovery measures, enhanced profitability, or favorable market conditions. The subsequent decline in 2022, while noteworthy, does not negate the positive turnaround, suggesting a period of stabilization at an improved profit level compared to the negative earnings years.

The data reveals notable fluctuations in the income tax provision (benefit) over the five-year period. Initially, there was a substantial tax benefit recorded in 2018 at -$303 million, indicating a negative tax expense or a tax benefit. This shifted to a positive income tax provision of $178 million in 2019, signaling a tax expense rather than a benefit during that year. The year 2020 once again saw a tax benefit of -$142 million, suggesting a reversal or reduction in tax obligations. However, in 2021 and 2022, the trend changed significantly, with the income tax provision increasing to $170 million and then sharply rising to $735 million. This indicates progressively higher tax expenses in the later years, with 2022 showing the most substantial tax charge over the period analyzed.

Cash operating taxes displayed a different pattern. From 2018 to 2019, there was a marked decrease from $60 million to $6 million. This was followed by a recovery to $49 million in 2020, and a substantial increase in 2021 to $290 million, suggesting a significant rise in actual cash payments for taxes in that year. In 2022, the cash operating taxes slightly decreased to $260 million, yet remained considerably higher than the levels observed in the earlier years.

Overall, the data points to considerable volatility in both the income tax provision and cash operating taxes, with a general trend towards higher tax expenses and cash tax payments in the most recent years. The divergence between income tax provision and cash operating taxes in certain years, such as 2018 and 2020 where provisions were negative but cash taxes positive, may indicate timing differences, tax credits, or adjustments impacting accounting and cash tax reporting differently.

The financial data exhibits notable fluctuations in key measures over the five-year period ending in 2022.

Total Reported Debt & Leases

There is a general upward trend from 2018 to 2020, with debt rising from $2,624 million to $5,109 million. This is followed by a decrease in 2021 to $4,085 million, after which the debt level stabilizes in 2022 at $4,131 million. The initial increase suggests a phase of leveraging or increased borrowing, while the subsequent reduction and stabilization indicate efforts to manage or reduce debt obligations.

Total United States Steel Corporation Stockholders’ Equity

Equity demonstrates a mixed trajectory. The equity declined from $4,202 million in 2018 to $3,786 million in 2020, possibly reflecting losses or distributions exceeding earnings. A significant reversal occurs in 2021 with equity surging to $9,010 million and further increasing to $10,218 million in 2022. This sharp rise in equity suggests substantial profits, capital injections, or retained earnings during these years, strengthening the company's financial position.

Invested Capital

Invested capital has consistently increased year over year, growing from $6,762 million in 2018 to $12,723 million in 2022. The steady rise indicates ongoing investment in assets or operations that support the business. The substantial jump between 2020 and 2021 aligns with the marked increase in equity, implying financed growth and asset expansion during this period.

The economic profit exhibited significant fluctuations throughout the observed periods. Initially, it was negative, starting at -363 million US dollars in 2018 and worsening to -996 million in 2019. This downward trend intensified in 2020, reaching a low of -2403 million. However, a notable reversal occurred in 2021 when economic profit turned positive, climbing sharply to 2321 million. In 2022, the positive trend continued but at a reduced level, with economic profit at 722 million.

Invested capital displayed a steady upward trajectory over the five years. It increased from 6762 million US dollars in 2018 to 7841 million in 2019, followed by further growth to 8622 million in 2020. The expansion accelerated in 2021 and 2022, with invested capital reaching 12346 million and 12723 million, respectively.

The economic spread ratio mirrored the changes seen in economic profit. It was negative in the first three years, deteriorating from -5.36% in 2018 to -12.7% in 2019, and dropping sharply to -27.88% in 2020. A dramatic positive turnaround took place in 2021 when the ratio improved to 18.8%. Although it declined in 2022, it remained positive at 5.68%.

Overall, the data indicate a period of decreasing profitability and negative economic returns until 2020, coupled with increasing capital investment. The years 2021 and 2022 show a recovery in economic profit and spread ratio, despite the continued growth in invested capital, suggesting improved efficiency and value generation during the latter period.

The financial data indicates significant fluctuations in the company's economic profit and sales performance over the examined five-year period.

Net Sales

Net sales exhibited a declining trend from 2018 to 2020, decreasing from approximately $14.2 billion to $9.7 billion. This decline was followed by a marked recovery in 2021, when sales more than doubled from the previous year to reach around $20.3 billion, with a slight increase continuing into 2022, reaching approximately $21.1 billion.

Economic Profit

The economic profit demonstrated a challenging period in the initial years, with negative values worsening from -$363 million in 2018 to a low of -$2.4 billion in 2020. A sharp turnaround occurred in 2021, producing a positive economic profit of $2.3 billion, which decreased but remained positive in 2022 at $722 million.

Economic Profit Margin

The economic profit margin aligns with the trends observed in economic profit, showing negative margins throughout 2018 to 2020, deteriorating from -2.56% in 2018 to -24.67% in 2020. A significant recovery took place in 2021 with the margin reaching 11.45%. However, this margin decreased to 3.43% in 2022, indicating some contraction in profitability relative to sales volume.

Overall, the data reflects a period of adversity in 2019 and 2020, with worsening profitability and sales, likely impacted by unfavorable business conditions. The subsequent years show a robust rebound in sales and profitability metrics, although the reduction in economic profit margin in 2022 suggests the profitability gains were somewhat curtailed despite sales growth. This pattern indicates recovery resilience but also highlights volatility in earnings quality relative to revenue generation.