Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Solvency Ratios (Summary)
United States Steel Corp., solvency 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).
- Debt to Equity Ratios
- The debt to equity ratio exhibited an increasing trend from early 2019, starting at 0.56 and rising significantly to a peak of around 1.55 by mid-2020, indicating a higher reliance on debt financing relative to equity. This was followed by a marked decline through late 2021, reaching a low near 0.38 in 2022. The ratio stabilized thereafter, maintaining a slightly increasing trend around 0.39 to 0.40 into mid-2023. When including operating lease liabilities, the pattern closely mirrored this trend but maintained marginally higher values.
- Debt to Capital Ratios
- Debt to capital ratios followed a similar trajectory as the debt to equity ratios, beginning around 0.36 and increasing to a peak near 0.61 in mid-2020. Subsequently, the ratio steadily declined through 2021 and stabilized at approximately 0.28 from 2022 onward. Including operating lease liabilities again resulted in slightly elevated ratios but displayed consistent behavior relative to the baseline ratios.
- Debt to Assets Ratios
- The debt to assets ratio increased from 0.21 in early 2019 to a high of approximately 0.45 around mid-2020, indicating a growing proportion of assets financed through debt during this period. A subsequent decline followed, leveling off near 0.20 by 2022 and maintaining that level into mid-2023. Incorporating operating lease liabilities led to marginally elevated ratios, with similar overall dynamics.
- Financial Leverage
- Financial leverage showed an initial increase from 2.63 to 3.47 between early 2019 and mid-2020, reflecting a heightened use of debt relative to equity in the capital structure. Following this peak, a steady reduction ensued through 2021 and 2022, stabilizing around 1.9 by mid-2023. This suggests a significant deleveraging effort post-2020.
- Interest Coverage Ratio
- Interest coverage experienced considerable volatility over the periods analyzed. It began at a healthy level of 6.63 in early 2019 but declined sharply during 2019 and early 2020, reaching negative values by the end of 2019 and early 2020. This indicates periods where earnings were insufficient to cover interest expenses. From mid-2020 onward, there was a notable recovery, with the ratio improving dramatically, peaking at around 26.08 by mid-2022. Although a gradual reduction occurred afterward, interest coverage remained strong, with values above 15 through mid-2023. This reflects improved profitability or reduced interest expenses during this time frame.
Debt Ratios
Coverage Ratios
Debt to Equity
United States Steel Corp., debt to equity 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) | ||||||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | ||||||||||||||||||||||||
| Long-term debt, less unamortized discount and debt issuance costs, excluding current maturities | ||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||
| Total United States Steel Corporation stockholders’ equity | ||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||
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
Debt to equity = Total debt ÷ Total United States Steel Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
The total debt exhibited an overall upward trend from March 2019 through mid-2020, rising from approximately $2.39 billion to a peak near $5.6 billion by June 2020. Following this peak, a steady decline was observed through the end of 2021, with debt levels decreasing to about $3.9 billion. From early 2022 to mid-2023, total debt remained relatively stable, fluctuating slightly around the $3.9 billion to $4.25 billion range. This pattern suggests initial increased leveraging possibly related to external factors affecting liquidity needs, followed by deleveraging and stabilization.
- Total Stockholders’ Equity
-
Stockholders’ equity showed a declining trend from March 2019, starting at approximately $4.2 billion, falling steadily across 2019 and into mid-2020, reaching a low near $3.4 billion by September 2020. A robust recovery phase ensued from late 2020 through 2021, with equity increasing significantly to roughly $9.0 billion by December 2021. This positive momentum continued at a slower pace into 2022 and mid-2023, with equity values approaching $10.7 billion. The pattern indicates strengthening financial position and accumulated retained earnings or asset revaluation enhancements over this period.
- Debt to Equity Ratio
-
The debt to equity ratio remained relatively low and stable around 0.56 to 0.61 from early to late 2019, then spiked markedly to 1.55 in June 2020, coinciding with peak debt and reduced equity levels. Following this peak, the ratio decreased sharply through 2021, reaching a low near 0.43 by December 2021, reflecting the combined effects of deleveraging and equity growth. The ratio maintained a steady range between 0.38 and 0.40 through 2022 and into mid-2023. This evolution demonstrates improved financial leverage management and a stronger balance sheet position over time, with less reliance on debt relative to equity after mid-2020.
Debt to Equity (including Operating Lease Liability)
United States Steel Corp., debt to equity (including operating lease liability) calculation (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).
1 Q2 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total United States Steel Corporation stockholders’ equity
= ÷ =
- Total Debt (including operating lease liability)
- The total debt exhibited a notable upward trend from the beginning of 2019 through mid-2020, peaking at 5,842 million US dollars in June 2020. After this peak, debt levels showed fluctuation, with a significant decline by the end of 2021, reaching a low of 4,085 million US dollars in December 2021. From early 2022 onward, the total debt remained relatively stable, fluctuating marginally around 4,000 to 4,389 million US dollars through mid-2023.
- Total Stockholders’ Equity
- Stockholders' equity generally trended upwards over the entire period. Initially, it decreased slightly from 4,235 million US dollars in March 2019 to a low of 3,449 million in September 2020. From that point onward, equity increased steadily and markedly, reaching a peak of 10,725 million US dollars by June 2023. This steady rise after late 2020 indicates a strengthening equity base and overall growth in shareholder value over the last few years.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio increased sharply from 0.62 in early 2019 to a high of 1.62 in June 2020, reflecting increased leverage combined with the dip in equity during that period. Following this peak, the ratio declined steeply, reaching a low point of 0.39 by September 2022. This indicates a material reduction in leverage relative to equity over time. From late 2022 through mid-2023, the ratio stabilized around 0.4, pointing to a more conservative capital structure.
- Overall Analysis
- The analysis reveals an initial phase characterized by increasing debt and declining equity, causing elevated leverage until mid-2020. Subsequently, the company improved its financial position by reducing debt levels and growing equity substantially. The significant rise in equity coupled with declining and stabilizing debt resulted in a consistent decrease in the debt to equity ratio, indicating improved financial stability and a stronger capital structure during the later periods. The stabilization of the debt to equity ratio around 0.4 suggests a balanced approach between debt and equity financing in recent quarters.
Debt to Capital
United States Steel Corp., debt to capital 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) | ||||||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | ||||||||||||||||||||||||
| Long-term debt, less unamortized discount and debt issuance costs, excluding current maturities | ||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||
| Total United States Steel Corporation stockholders’ equity | ||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||
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
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a rising trend from early 2019 through the mid-2020 period, increasing from 2,392 million USD at the start of 2019 to a peak of 5,599 million USD by the second quarter of 2020. Following this peak, debt levels decreased notably towards the end of 2021, reaching around 3,891 million USD in the fourth quarter of 2021. In 2022 and into mid-2023, total debt remained relatively stable, fluctuating slightly between approximately 3,900 million USD and 4,250 million USD.
- Total Capital
- Total capital showed a generally upward trajectory across the entire timeline. Starting at 6,627 million USD in March 2019, capital steadily increased with some fluctuations, surpassing 14,000 million USD in early 2022 and reaching nearly 15,000 million USD by the middle of 2023. This indicates an expansion in the company's capital base over the analyzed period.
- Debt to Capital Ratio
- The debt to capital ratio rose significantly from a low of approximately 0.36 in early 2019 to a peak of 0.61 by mid-2020, reflecting a period in which debt grew faster than capital. From that peak onward, the ratio declined markedly, dropping to 0.30 by the end of 2021 and stabilizing around 0.28 through mid-2023. This trend suggests a reduction in leverage and an improvement in financial structure following the elevated debt levels experienced in 2020.
- Overall Analysis
- Between 2019 and mid-2020, the company took on significantly increased debt, possibly in response to specific financial needs or external pressures during that period. Subsequent periods experienced a deliberate reduction of debt, while simultaneously growing total capital. This resulted in a pronounced improvement in the debt to capital ratio, indicating a strategic move toward deleveraging and strengthening the balance sheet. By mid-2023, the company maintains a relatively low and stable leverage position, supported by a growing capital base and controlled debt levels.
Debt to Capital (including Operating Lease Liability)
United States Steel Corp., debt to capital (including operating lease liability) calculation (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).
1 Q2 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
The financial data reveals several notable trends in the company's capital structure over the observed periods. Total debt, including operating lease liabilities, increased significantly from the first quarter of 2019 through mid-2020. Specifically, there was a substantial rise between the end of 2019 and the middle of 2020, peaking around June 2020. Following this peak, total debt showed a decreasing trend through the end of 2021, before stabilizing with minor fluctuations into 2023.
Total capital, encompassing operating lease liabilities, followed an overall upward trajectory during the entire period. It experienced steady growth from the beginning of 2019 through 2023, with some accelerated increases particularly noticeable in the years 2021 and 2022. This indicates an expansion in the company’s resource base or investments.
The debt-to-capital ratio illustrates shifts in financial leverage over time. Initially, this ratio was relatively stable near 0.38 but increased sharply starting late 2019, reaching a peak above 0.6 in mid-2020. This suggests the company took on a higher proportion of debt relative to its total capital during that period. From late 2020 onward, the ratio decreased steadily, dropping to approximately 0.28-0.29 by 2023. The decline in the debt-to-capital ratio amidst increasing total capital points to deleveraging and a more conservative capital structure in recent quarters.
- Total Debt Trends
- Marked increase from early 2019 to mid-2020, peaking in June 2020.
- Subsequent decline through 2021, followed by stabilization with slight fluctuations up to mid-2023.
- Total Capital Trends
- Consistent upward trend from 2019 through 2023, with accelerated growth in 2021 and 2022.
- Indicates increased resources or investments over time.
- Debt-to-Capital Ratio
- Stable around 0.38 initially, rising sharply to above 0.6 mid-2020.
- Declined steadily from late 2020 to below 0.3 by mid-2023, signaling reduced leverage.
Overall, the analysis suggests that after a period of increased indebtedness in 2020, the company has pursued a strategy of deleveraging while expanding its capital base. This shift toward lower financial leverage could reflect efforts to strengthen financial stability or adjust to market conditions. The increase in total capital together with controlled debt levels indicate an improved balance sheet position in recent periods.
Debt to Assets
United States Steel Corp., debt to assets 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) | ||||||||||||||||||||||||
| Short-term debt and current maturities of long-term debt | ||||||||||||||||||||||||
| Long-term debt, less unamortized discount and debt issuance costs, excluding current maturities | ||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||
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
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's debt and asset management over the observed periods.
- Total Debt
- Total debt showed a consistent upward trend from March 2019 through June 2020, rising from approximately $2.4 billion to nearly $5.6 billion. After reaching this peak, the debt level fluctuated downward through the end of 2021, lowering to about $3.9 billion. In 2022, the debt stabilized around the $3.9 billion to $4.0 billion range but then exhibited a modest increase again in the first two quarters of 2023, reaching approximately $4.3 billion.
- Total Assets
- Total assets increased steadily throughout the period, moving from roughly $11.2 billion in early 2019 to over $20.3 billion by mid-2023. The growth accelerated notably in 2021 and 2022, with assets climbing nearly 30% from around $14.7 billion at the start of 2021 to almost $20 billion by the end of 2022. This consistent asset growth indicates ongoing accumulation or appreciation of company resources over time.
- Debt to Assets Ratio
- The debt to assets ratio followed a distinct pattern, beginning at a low level of 0.21 in March 2019 and climbing steadily through 2020 to peak at 0.45 in June 2020. This increase suggests a higher leverage position during this period. Following this peak, the ratio declined sharply through the remainder of 2020 and throughout 2021, falling to a low of 0.20 by the fourth quarter of 2021. Throughout 2022 and into mid-2023, the ratio remained relatively stable around the 0.20 to 0.21 mark, indicating a maintained balance between debt and assets during this time.
Overall, the data indicates an initial phase of increased leverage concurrent with rising debt and asset levels through mid-2020, possibly reflecting strategic financing decisions or responses to external conditions. This was followed by a deleveraging phase in 2021, where the company reduced its debt relative to assets significantly, aligning with the increase in total assets. The stabilization of the debt to assets ratio near 0.20 in recent quarters suggests a conservative capital structure and controlled risk exposure as the asset base continued to expand.
Debt to Assets (including Operating Lease Liability)
United States Steel Corp., debt to assets (including operating lease liability) calculation (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).
1 Q2 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
The financial data reveals several notable trends concerning debt levels, asset base, and financial leverage over the examined periods.
- Total Debt (including operating lease liability)
-
Total debt exhibited an overall upward trend from early 2019 through mid-2020, increasing from approximately $2.63 billion in March 2019 to a peak near $5.84 billion by June 2020. This sharp rise corresponds with the period surrounding the onset of the COVID-19 pandemic, suggesting increased borrowing or lease liabilities during this time. Subsequently, total debt experienced a significant decline through late 2021, dropping to around $4.08 billion by December 2021. The debt level stabilized thereafter, fluctuating modestly around the $4.1 billion mark into mid-2023, with a slight upward movement to approximately $4.39 billion by June 2023.
- Total Assets
-
The asset base showed steady expansion across the entire period. Starting at roughly $11.15 billion in March 2019, total assets grew gradually through 2019 and early 2020 before accelerating notably from March 2021 onward. By June 2023, total assets reached approximately $20.31 billion, reflecting substantial growth of nearly 82% over the four-year horizon. This increase may be attributed to acquisitions, reinvestment, or revaluation of assets, indicating an expanding operational or capital footprint.
- Debt to Assets Ratio (including operating lease liability)
-
The ratio of debt to assets initially rose from 0.24 in early 2019 to a peak of 0.47 in June 2020, indicating a period where debt grew faster than assets, coinciding with the pandemic timeframe. After this peak, the leverage ratio steadily declined, reaching a low of 0.20 by September 2022. This downward trend suggests improved balance sheet strength via asset growth outpacing debt reduction or stable debt levels. The ratio then modestly increased to 0.22 by June 2023, indicating a slight increase in leverage, but remaining considerably below the mid-2020 peak levels and earlier years.
Overall, the data suggests an initial period of increased borrowing or lease liabilities which was followed by a deliberate reduction in debt relative to the growing asset base. The substantial increase in total assets over time has contributed to a marked improvement in financial leverage, enhancing the entity’s balance sheet stability. Recent quarters show some stabilization in both debt and leverage, indicating a possible strategic balance between growth and financial risk management.
Financial Leverage
United States Steel Corp., financial leverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Total United States Steel Corporation stockholders’ equity | ||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||
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
Financial leverage = Total assets ÷ Total United States Steel Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- Total assets demonstrated a general upward trend over the analyzed periods. From early 2019 through mid-2020, total assets increased moderately, followed by some fluctuation toward the end of 2020. A significant growth phase occurred beginning in early 2021, with total assets steadily rising from approximately $14.7 billion to over $20.3 billion by mid-2023. This indicates an expansion in the company’s asset base, particularly pronounced during the 2021–2023 timeframe.
- Stockholders’ Equity
- Stockholders’ equity initially declined from early 2019 through late 2020, falling from about $4.2 billion to a low of approximately $3.4 billion. Beginning in early 2021, equity reversed this trend and experienced consistent growth through 2022, peaking above $10.4 billion. However, a slight decrease was observed in late 2022 and early 2023, but equity remained elevated relative to earlier periods, suggesting strengthened capital structure and retained earnings over the medium term.
- Financial Leverage
- Financial leverage showed a pronounced decrease over time. Early periods in 2019 displayed leverage ratios around 2.6 to 2.8, which increased to peak near 3.47 in mid-2020, indicating higher reliance on debt financing during that period. Beginning in late 2020, financial leverage steadily declined, falling below 2.0 by the end of 2021 and stabilizing near 1.9 through mid-2023. This downward trend reflects a decrease in relative debt levels compared to equity, suggesting improved balance sheet strength and reduced financial risk over recent years.
- Overall Insights
- The combined trends in total assets, stockholders’ equity, and financial leverage indicate substantial balance sheet improvement from 2021 onward. The company expanded its asset base significantly while strengthening equity and reducing leverage, which may reflect successful deleveraging efforts, retained earnings accumulation, or capital injections. Periods of elevated leverage in 2020 correspond with a temporary rise in debt reliance, possibly related to external challenges or strategic investment phases. The subsequent reduction in leverage corresponds with rising equity, signaling enhanced financial stability and potential for improved creditworthiness.
Interest Coverage
United States Steel Corp., interest coverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net earnings (loss) attributable to United States Steel Corporation | ||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||
| Add: Interest expense | ||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| Freeport-McMoRan Inc. | ||||||||||||||||||||||||
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
Interest coverage
= (EBITQ2 2023
+ EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022)
÷ (Interest expenseQ2 2023
+ Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before Interest and Tax (EBIT)
- The EBIT figures demonstrate significant volatility over the examined quarters. Initially, the EBIT experienced a decline in late 2019, dipping into negative territory with a notable low of -402 million USD in Q4 2019. This negative trend persisted into the first three quarters of 2020, reflecting substantial operational challenges. However, beginning in Q4 2020, EBIT returned to positive values and exhibited a strong upward trend, peaking at 2,337 million USD in Q3 2021. Post this peak, EBIT showed a cyclical pattern with some decline through Q4 2021 and 2022, followed by a partial recovery in early 2023, indicating fluctuating but overall improved profitability compared to earlier periods.
- Interest Expense
- Interest expense increased steadily from early 2019 through mid-2020, reaching a peak of 84 million USD in Q3 2020 before beginning a consistent reduction trend. From late 2020 onward, interest expenses decreased progressively each quarter, declining to 20 million USD by Q2 2023. This reduction suggests improved debt management or refinancing activities that lowered borrowing costs.
- Interest Coverage Ratio
- The interest coverage ratio mirrored the trends observed in EBIT and interest expense. Early in the period, the ratio declined substantially, turning negative in late 2019 and the first three quarters of 2020, which indicates insufficient EBIT to cover interest expenses. With EBIT recovery starting in Q4 2020 and the decrease in interest expense, the interest coverage ratio improved considerably, reaching a high of 26.08 in Q2 2022. Following this peak, there was a gradual decline in the ratio through mid-2023, indicating a slight reduction in the ability to cover interest obligations but remaining at a strong coverage level overall.