Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
United States Steel Corp., liquidity ratios (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).
- Current Ratio Trends
- The current ratio exhibits notable fluctuations over the analyzed period. Starting around 1.47 in the first quarter of 2019, it slightly declined and stabilized near 1.4 through the first three quarters of that year. A marked increase occurred in 2020's second quarter, peaking at 2.3, which indicates a significant enhancement in short-term liquidity during that period. Following this peak, the ratio gradually decreased but maintained levels above 1.6 through the end of 2020. Throughout 2021 and into the first half of 2023, the ratio fluctuated between approximately 1.27 and 2.03, suggesting moderate yet stable liquidity. The slight downward trend in mid-2023 to around 1.88-1.92 hints at a modest reduction in current assets relative to liabilities, though liquidity remains generally adequate.
- Quick Ratio Trends
- The quick ratio mirrors several of the movements observed in the current ratio but shows greater volatility. Initially, it declined from 0.77 in early 2019 to a low near 0.66 by the third quarter of 2019, indicating a reduced ability to cover short-term liabilities with immediate assets. A sharp increase is evident in mid-2020, reaching as high as 1.51, reflecting improved liquidity excluding inventory. This elevated level tapered off mid to late 2020 but remained above 1.1, which is notably higher than pre-2020 levels. In 2021, the ratio oscillated between approximately 0.75 and 1.2, and from 2022 through mid-2023, it consistently maintained values near or above 1.2, suggesting a strengthening of liquid assets relative to short-term obligations excluding inventory.
- Cash Ratio Trends
- The cash ratio demonstrates the most pronounced variability, reflecting changes in the most liquid assets. Starting at low levels around 0.22 in early 2019, it reached a peak of 1.07 in the second quarter of 2020, more than quadrupling within roughly a year. This peak coincides with the liquidity spikes seen in the other ratios and likely signals a strategic buildup of cash or cash equivalents during the early phases of 2020. Subsequently, the ratio declined but remained higher than earlier periods, fluctuating generally between 0.3 and 0.8 through 2021 and much of 2022. In 2023, the cash ratio stabilizes around 0.7 to 0.8, suggesting a sustained, healthier cash position compared to the pre-2020 period.
- Overall Liquidity Insights
- The data collectively indicate that the company significantly enhanced its liquidity starting in early 2020, with all three ratio metrics peaking or rising sharply during this time. This behavior may reflect a strategic response to increasing uncertainty or changing operational demands. Post-2020, liquidity measures have moderated but remain elevated relative to the 2019 baseline, demonstrating a strengthened liquidity profile. The sustained higher quick and cash ratios imply a focus on maintaining liquid and highly liquid assets capable of meeting near-term obligations without reliance on inventory liquidation. This enhanced liquidity position potentially improves financial flexibility and risk resilience moving forward.
Current Ratio
United States Steel Corp., current ratio calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 7,835) | 7,548) | 7,866) | 8,452) | 9,035) | 8,380) | 7,152) | 6,799) | 5,638) | 4,250) | 4,432) | 4,244) | 4,924) | 4,686) | 3,813) | 4,042) | 4,547) | 4,630) | ||||||
| Current liabilities | 4,072) | 4,015) | 3,959) | 4,162) | 4,568) | 4,405) | 3,852) | 4,030) | 4,451) | 3,144) | 2,656) | 2,463) | 2,141) | 2,777) | 2,625) | 2,850) | 3,223) | 3,140) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Current ratio1 | 1.92 | 1.88 | 1.99 | 2.03 | 1.98 | 1.90 | 1.86 | 1.69 | 1.27 | 1.35 | 1.67 | 1.72 | 2.30 | 1.69 | 1.45 | 1.42 | 1.41 | 1.47 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 2.94 | 2.79 | 2.46 | 2.56 | 2.73 | 2.37 | 2.52 | 2.50 | 2.28 | 2.35 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,835 ÷ 4,072 = 1.92
2 Click competitor name to see calculations.
The analysis of current assets, current liabilities, and the current ratio over the observed periods reveals several notable trends and insights about the company's short-term financial health and liquidity management.
- Current Assets
- Current assets experienced some fluctuations throughout the periods. Starting at 4,630 million USD in March 2019, they generally declined during 2019, reaching a low point near the end of that year. In 2020, current assets showed recovery and growth, peaking in the first half of 2022 at over 9,000 million USD. Thereafter, a modest decline is observed, stabilizing near 7,800 million USD by mid-2023. This pattern suggests an active management of liquid resources, with periodic increases potentially aligned with business cycles or operational needs.
- Current Liabilities
- Current liabilities demonstrated a less volatile but still dynamic pattern. From an initial value of approximately 3,140 million USD in early 2019, liabilities dipped during the middle of 2020, reaching their lowest point near 2,141 million USD in June 2020. Subsequently, liabilities rose again, peaking above 4,500 million USD by early 2022 before receding slightly through mid-2023. Such fluctuations may reflect changes in short-term financing needs, accounts payable, or accrued expenses consistent with operational cycles or external financial conditions.
- Current Ratio
- The current ratio, measuring short-term liquidity, fluctuated between approximately 1.27 and 2.30 across the periods. During 2019, the ratio was relatively stable around 1.4 to 1.5. There was a significant increase during mid-2020, peaking at 2.30, indicating stronger liquidity relative to liabilities. After this peak, the ratio declined towards the end of 2021 but then gradually increased again in 2022 and maintained levels near 1.9 to 2.0 through mid-2023. These trends suggest periods of enhanced liquidity and conservative working capital management, which could imply a focus on maintaining sufficient buffers to meet current obligations.
Overall, the data signals prudent liquidity management with responsive adjustments to both assets and liabilities. The fluctuations in current assets and liabilities indicate adaptability to varying operational or market conditions, while the generally healthy current ratio above 1.0 throughout suggests the company maintained the ability to cover short-term obligations. The stronger liquidity positions observed in 2020 and 2022 may correlate with strategic decisions to bolster financial stability amid uncertain economic periods.
Quick Ratio
United States Steel Corp., quick ratio calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cash and cash equivalents | 3,080) | 2,837) | 3,504) | 3,364) | 3,035) | 2,866) | 2,522) | 2,044) | 1,329) | 753) | 1,985) | 1,696) | 2,300) | 1,350) | 749) | 476) | 651) | 676) | ||||||
| Receivables, less allowance | 1,698) | 1,649) | 1,485) | 1,859) | 2,428) | 2,267) | 1,968) | 2,275) | 1,903) | 1,517) | 914) | 996) | 879) | 1,085) | 956) | 1,183) | 1,420) | 1,489) | ||||||
| Receivables from related parties | 166) | 159) | 150) | 176) | 174) | 148) | 121) | 128) | 107) | 102) | 80) | 103) | 60) | 87) | 221) | 217) | 218) | 240) | ||||||
| Total quick assets | 4,944) | 4,645) | 5,139) | 5,399) | 5,637) | 5,281) | 4,611) | 4,447) | 3,339) | 2,372) | 2,979) | 2,795) | 3,239) | 2,522) | 1,926) | 1,876) | 2,289) | 2,405) | ||||||
| Current liabilities | 4,072) | 4,015) | 3,959) | 4,162) | 4,568) | 4,405) | 3,852) | 4,030) | 4,451) | 3,144) | 2,656) | 2,463) | 2,141) | 2,777) | 2,625) | 2,850) | 3,223) | 3,140) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Quick ratio1 | 1.21 | 1.16 | 1.30 | 1.30 | 1.23 | 1.20 | 1.20 | 1.10 | 0.75 | 0.75 | 1.12 | 1.13 | 1.51 | 0.91 | 0.73 | 0.66 | 0.71 | 0.77 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 1.62 | 1.62 | 1.57 | 1.65 | 1.84 | 1.60 | 1.66 | 1.66 | 1.45 | 1.38 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,944 ÷ 4,072 = 1.21
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding liquidity as represented by total quick assets, current liabilities, and the quick ratio over the examined periods.
- Total Quick Assets
- Total quick assets exhibited fluctuations throughout the observed quarters. Initially, there was a decline from approximately 2,405 million USD in the first quarter of 2019 to a low near 1,876 million USD in the third quarter of 2019. This was followed by an upward trend reaching a peak of about 3,239 million USD in the second quarter of 2020. Subsequently, quick assets remained relatively elevated with modest fluctuations, peaking at roughly 5,637 million USD in the second quarter of 2022, before slightly decreasing towards the mid-2023 period.
- Current Liabilities
- Current liabilities showed moderate volatility. Beginning at approximately 3,140 million USD in the first quarter of 2019, liabilities generally decreased, reaching a trough around 2,141 million USD in the second quarter of 2020. However, from the third quarter of 2020 onwards, current liabilities increased again, rising sharply to approximately 4,451 million USD by the second quarter of 2021. Following this peak, liabilities stabilized at a level ranging between about 3,959 million USD to 4,072 million USD through mid-2023.
- Quick Ratio
- The quick ratio demonstrated notable improvement starting from 0.77 in early 2019, followed by a dip below 0.7 during mid to late 2019. A significant increase occurred in the first half of 2020, with the ratio reaching 1.51, indicating a strong liquidity position relative to current liabilities during this period. The ratio fluctuated thereafter but generally remained above 1.0 from late 2020 through mid-2023, with intermittent increases peaking around 1.3 in several quarters of 2022 and early 2023. This sustained improvement suggests enhanced short-term financial solvency over recent periods.
In summary, the company’s liquidity position, as indicated by the quick ratio, improved markedly from 2020 onwards, supported by a rise in quick assets and controlled fluctuations in current liabilities. The trend suggests increased capacity to meet short-term obligations with liquid assets in recent years compared to the earlier periods analyzed.
Cash Ratio
United States Steel Corp., cash ratio calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cash and cash equivalents | 3,080) | 2,837) | 3,504) | 3,364) | 3,035) | 2,866) | 2,522) | 2,044) | 1,329) | 753) | 1,985) | 1,696) | 2,300) | 1,350) | 749) | 476) | 651) | 676) | ||||||
| Total cash assets | 3,080) | 2,837) | 3,504) | 3,364) | 3,035) | 2,866) | 2,522) | 2,044) | 1,329) | 753) | 1,985) | 1,696) | 2,300) | 1,350) | 749) | 476) | 651) | 676) | ||||||
| Current liabilities | 4,072) | 4,015) | 3,959) | 4,162) | 4,568) | 4,405) | 3,852) | 4,030) | 4,451) | 3,144) | 2,656) | 2,463) | 2,141) | 2,777) | 2,625) | 2,850) | 3,223) | 3,140) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Cash ratio1 | 0.76 | 0.71 | 0.89 | 0.81 | 0.66 | 0.65 | 0.65 | 0.51 | 0.30 | 0.24 | 0.75 | 0.69 | 1.07 | 0.49 | 0.29 | 0.17 | 0.20 | 0.22 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 1.40 | 1.30 | 1.28 | 1.43 | 1.60 | 1.29 | 1.37 | 1.39 | 1.14 | 0.99 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,080 ÷ 4,072 = 0.76
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends concerning cash assets, current liabilities, and the cash ratio over the examined periods.
- Total Cash Assets
- Total cash assets showed significant fluctuations across the quarters. Starting at 676 million US dollars in the first quarter of 2019, the amount declined to a low of 476 million US dollars by the third quarter of that year, followed by a recovery to 749 million US dollars by the year's end. In 2020, cash assets increased markedly, peaking at 2,300 million US dollars in the second quarter, likely reflecting a strategic buildup of liquidity. There was some variability throughout the subsequent quarters, with a general upward trend reaching the highest recorded amount of 3,504 million US dollars in the final quarter of 2022 before a slight decrease during the first half of 2023.
- Current Liabilities
- Current liabilities exhibited moderate volatility over the observed timeframe. Beginning at 3,140 million US dollars in early 2019, liabilities decreased to a low of 2,141 million US dollars in mid-2020, suggesting a reduction in short-term obligations at that point. However, from the first quarter of 2021 onwards, current liabilities generally trended upwards, peaking at 4,568 million US dollars in the second quarter of 2022. This rise was followed by some decline and stabilization near the 4,000 million US dollar mark in the first half of 2023.
- Cash Ratio
- The cash ratio exhibited considerable variation indicative of shifts in liquidity management. It started at a low of 0.17 in the third quarter of 2019, increasing sharply to over 1.0 in the second quarter of 2020, correlating with the surge in cash assets and decline in current liabilities. Subsequently, the ratio moderated but remained above 0.5 for most of 2021 and 2022, reflecting a relatively strong liquidity position. By the first half of 2023, the cash ratio slightly decreased but maintained a solid level around 0.7 to 0.8, indicating ongoing prudent liquidity maintenance despite higher levels of current liabilities.
Overall, the data suggest a strategic enhancement of liquidity beginning in 2020, with increased cash holdings outpacing current liabilities growth in most periods. The fluctuation in current liabilities may reflect operational adjustments or financing activities. The sustained improvement in the cash ratio demonstrates a focus on maintaining a robust buffer of liquid assets to cover short-term obligations effectively.