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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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Operating Profit (P/OP) since 2005
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- Analysis of Revenues
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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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Debt to Equity and Debt Ratios
- The debt to equity ratio initially declined from 0.83 in the first quarter of 2018 to 0.56 by the first quarter of 2019, indicating a reduction in financial leverage. However, it increased sharply to a peak of 1.55 in the second quarter of 2020, reflecting a significant rise in debt relative to equity, possibly due to increased borrowing or reduced equity. Following this peak, there was a consistent and notable decline, reaching approximately 0.40 by the middle of 2023, suggesting a purposeful deleveraging strategy over recent quarters.
- When including operating lease liabilities, the debt to equity ratio follows a similar trend but with slightly higher values, peaking at 1.62 in mid-2020 and decreasing to approximately 0.41 in mid-2023. This indicates that lease liabilities contribute modestly to total debt obligations.
- The debt to capital ratio mirrors the debt to equity trend, decreasing from 0.45 in early 2018 to about 0.36 in early 2019, rising to 0.61-0.62 during 2020, and subsequently dropping to around 0.28 by mid-2023. The ratio including operating leases presents a similar pattern with slightly elevated levels.
- The debt to assets ratio increased from approximately 0.28 in early 2018 to a peak near 0.45 in mid-2020, then steadily declined to roughly 0.20 by mid-2023. Inclusion of lease liabilities raises these ratios by a slight margin but does not materially alter the overall trend.
- Financial Leverage
- The financial leverage ratio decreased from 2.92 in the first quarter of 2018 to around 2.6 by the end of 2019, then experienced a sharp increase to 3.47 in mid-2020, signaling increased use of debt financing during this period. From late 2020 onwards, there has been a steady decrease to approximately 1.89 by the middle of 2023, consistent with the reduction in debt levels across other leverage metrics.
- Interest Coverage
- Interest coverage data is intermittently available from late 2018. The ratio was relatively high and healthy in late 2018 and early 2019 (around 5.8 to 6.6), suggesting adequate earnings to cover interest expenses. A significant decline occurred in 2019 and 2020, with the ratio turning negative in early 2020 and reaching nadirs of -7.27 in the third quarter of 2020, reflecting earnings insufficient to cover interest obligations and possibly operational distress or one-time charges.
- From late 2020 onwards, interest coverage improved substantially, turning positive again and reaching very strong levels by the end of 2022 and early 2023, peaking at 26.08 in the fourth quarter of 2022. This indicates a robust recovery in earnings relative to interest expenses, suggesting enhanced operational performance or reduced interest costs.
- Overall Trends and Insights
- The data reveals a cyclical pattern characterized by increasing leverage and deteriorating interest coverage around the 2020 timeframe, likely reflecting economic or industry challenges during this period. Since late 2020, the company has actively reduced its leverage and substantially improved its capacity to cover interest expenses, pointing toward successful deleveraging and strengthening financial health. The decline in all debt-related ratios coupled with rising interest coverage suggests increased financial stability and improved creditworthiness as of mid-2023.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to equity = Total debt ÷ Total United States Steel Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in debt and equity levels over the analyzed periods. Total debt initially decreased from March 2018 through December 2018, reaching a low point before rising sharply starting in December 2018 and peaking in June 2020. Following this peak, total debt experienced a decline through December 2021, stabilizing somewhat with minor fluctuations into mid-2023.
In contrast, stockholders' equity demonstrated a consistent upward trajectory throughout the entire timeframe. Starting at a lower base in early 2018, equity levels increased steadily each quarter, with some periods showing more pronounced growth, particularly from mid-2020 onward, culminating in the highest equity values by June 2023.
The debt-to-equity ratio reflects these dynamics. Initially, the ratio decreased steadily from 0.83 in March 2018 to 0.56 by June 2019, indicating relatively lower leverage. However, from late 2019 through mid-2020, the ratio rose sharply, peaking at 1.55, suggesting increased reliance on debt financing during that period. Subsequently, the ratio declined significantly through late 2021 and stabilized below 0.5 from 2022 onward, remaining relatively low despite minor upticks later, indicating a stronger equity position relative to debt in recent quarters.
- Total Debt
- After an initial reduction between early 2018 and late 2018, total debt surged markedly from the end of 2018 until mid-2020. This rise coincided with the highest debt levels observed, followed by a gradual decrease and relative stabilization through 2022 and into 2023.
- Stockholders' Equity
- Equity increased consistently without any periods of decline, notably accelerating growth from mid-2020, reaching peak values by mid-2023. This steady rise suggests strengthening net asset positions and potentially increased retained earnings or capital injections.
- Debt-to-Equity Ratio
- Initially declining from 2018 into 2019, the ratio spiked exceeding 1.5 during the early phase of the COVID-19 pandemic in 2020, indicating higher leverage. The subsequent decline to below 0.5 from 2022 onward points to a strategic reduction in leverage and enhanced equity buffers, improving the company's financial stability in recent periods.
Overall, the data indicates a period of heightened borrowing in response to external circumstances around 2020, followed by efforts to deleverage and build equity. The current debt-to-equity levels suggest a more conservative capital structure relative to the earlier years analyzed.
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total United States Steel Corporation stockholders’ equity
= ÷ =
The analysis of the quarterly financial data reveals evolving trends in the company's capital structure over the specified periods, indicating changes in both debt levels and equity composition.
- Total Debt (including operating lease liability)
- Initially, total debt showed a moderate decline from 2,852 million USD at the end of March 2018 to 2,381 million USD by the end of December 2018, suggesting a reduction in leverage during that period.
- Starting in early 2019, a noticeable upward trend in debt is observed, culminating in a significant peak at 5,842 million USD by June 2020. This sharp increase points to heightened borrowing, possibly related to strategic investments or external financing needs during that time frame.
- Following the peak, debt levels decreased markedly from June 2021 (5,767 million USD) through to December 2021 (4,085 million USD), indicating active debt reduction efforts.
- Post-December 2021, total debt remained relatively stable with a slight upward drift, ending at 4,389 million USD by June 2023.
- Total Stockholders’ Equity
- Equity showed consistent growth over the entire timeline, starting from 3,438 million USD in March 2018 and progressively increasing to 10,725 million USD by June 2023.
- The most pronounced acceleration in equity growth occurred between March 2021 and December 2021, where equity jumped significantly from 4,627 million USD to 9,010 million USD, suggesting improved retained earnings, capital injections, or revaluation effects.
- After this surge, equity continued a moderate upward trajectory, indicating sustained value creation for shareholders.
- Debt to Equity Ratio (including operating lease liability)
- This ratio declined steadily from 0.83 in March 2018 to a low of 0.39 in December 2022, reflecting a strengthening equity base relative to debt levels and enhancing financial stability.
- There was a temporary increase from December 2018 (0.57) peaking at 1.62 by June 2020, aligned with the notable rise in total debt during the same period, indicating an increased reliance on debt financing.
- Subsequent to June 2020, the ratio fell markedly, reaching as low as 0.39 by year-end 2022. This suggests deliberate deleveraging combined with robust equity growth.
- From December 2022 to June 2023, the ratio experienced a slight increase from 0.39 to 0.41, indicating a marginal relative increase in debt or a slight deceleration in equity growth, yet maintaining a relatively low leverage level.
In summary, the data depicts a company that initially reduced its total debt and subsequently increased leverage sharply during 2019 and the first half of 2020. This was followed by an effective deleveraging phase aligned with substantial equity growth, particularly in 2021. By mid-2023, the company maintained a stronger equity position with a conservative debt to equity ratio, suggesting an improved financial structure and reduced financial risk.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals significant fluctuations and notable trends in the company's capital structure over the observed periods.
- Total Debt
- The total debt exhibits a complex pattern with periods of both increase and decrease. Initially, debt decreased slightly from 2,852 million USD at the end of Q1 2018 to 2,381 million USD by Q4 2018. This was followed by a gradual increase to 3,641 million USD by the end of 2019. Thereafter, total debt sharply increased to peak at 5,599 million USD in Q2 2020, likely reflecting a significant borrowing event or increased leveraging. Post that peak, debt levels declined steadily to 3,891 million USD by Q4 2021. Subsequently, the debt level stabilized with minor fluctuations, remaining near 4,000 million USD through mid-2023.
- Total Capital
- Total capital showed a generally increasing trend throughout the period. Starting at 6,290 million USD in Q1 2018, the capital base expanded to 7,733 million USD by Q4 2019. A marked increase is observed from 2020 onwards, rising sharply to 9,216 million USD in Q2 2020 and continuing upward to reach 14,976 million USD by mid-2023. This steady growth in total capital indicates ongoing capitalization efforts or retained earnings accumulation offsetting debt fluctuations.
- Debt to Capital Ratio
- The debt to capital ratio exhibited notable volatility, closely mirroring the trends in total debt relative to total capital. Starting at 0.45 in early 2018, the ratio decreased steadily to a low of 0.36 by the end of 2018 and stayed relatively stable through mid-2019. A substantial jump occurred by the end of 2019, reaching 0.47, then surged to a peak of 0.61 in mid-2020, coinciding with peak total debt and reflecting higher leverage. Following this, the ratio decreased consistently, reaching 0.28 by mid-2023. This decline denotes a deleveraging phase and a shift to a more conservative capital structure, likely driven by increased capital base and reduced reliance on debt.
In summary, the data indicates an initial phase of debt reduction, followed by a significant leveraging period peaking in mid-2020, potentially influenced by external or strategic factors. Post-2020, the company appears to have engaged in deleveraging while simultaneously increasing its total capital base, resulting in a more balanced and strengthened capital structure by 2023. The debt to capital ratio’s downward trajectory after 2020 confirms a strategic emphasis on reducing financial risk.
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
- Total Debt (including operating lease liability)
- The total debt exhibited a fluctuating pattern over the observed quarters. Initially, it declined from 2,852 million USD at the end of Q1 2018 to a low of 2,381 million USD by Q4 2018. Subsequently, the total debt increased significantly, peaking at 5,842 million USD in Q2 2020. After this peak, there was a downward trend until Q4 2021 when debt reached 4,085 million USD. From Q1 2022 forward, the debt levels stabilized around the 4,000 to 4,400 million USD range with a small increase noted by Q2 2023 at 4,389 million USD.
- Total Capital (including operating lease liability)
- Total capital showed a consistent upward trajectory throughout the entire period. Starting at 6,290 million USD in Q1 2018, capital increased quarter over quarter, reaching 15,114 million USD by Q2 2023. This indicates a significant expansion in the company’s capital base, with no signs of contraction during the observed timeframe.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio demonstrated notable variability aligned with the movements in total debt and capital. The ratio decreased from 0.45 in Q1 2018 to a low of 0.36 in Q4 2018, reflecting the periods of debt reduction combined with growing capital. Then, it rose sharply to 0.62 at Q2 2020, corresponding to the peak in total debt. After this peak, the ratio declined steadily, reaching a low of 0.28 by Q4 2022, showing improved leverage position. Stabilization in this ratio occurred from Q1 2023 onwards around 0.29, suggesting the company managed to maintain a more conservative debt level relative to its capital structure recently.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data over the examined quarters reveals several notable trends in the company's debt and asset management.
- Total Debt
- The total debt exhibited fluctuations across the observed periods. Initially, total debt decreased from $2,852 million in March 2018 to $2,381 million by December 2018, indicating a reduction effort or lower borrowing. Subsequently, debt increased sharply to $3,641 million by December 2019, continuing to rise and peaking at $5,599 million in June 2020. After this peak, total debt generally declined through 2021, reaching a low of $3,891 million by December 2021. From 2022 onward, debt levels stabilized around $3,900 to $4,200 million, with a slight uptick to $4,251 million in June 2023.
- Total Assets
- Total assets demonstrated a consistent upward trajectory over the entire period. Starting at $10,026 million in March 2018, assets grew steadily, with notable accelerations in 2021 reaching $17,816 million by December 2021. The upward trend continued into 2022 and early 2023, with total assets reaching $20,309 million by June 2023. This consistent growth suggests ongoing asset investment or appreciation.
- Debt to Assets Ratio
- The debt to assets ratio initially declined from 0.28 in March 2018 to 0.22 by December 2018, reflecting the initial debt reduction alongside asset growth. The ratio subsequently increased sharply to 0.45 by June 2020, coinciding with the peak in total debt and somewhat slower asset growth during the same timeframe. Following this peak, the ratio steadily decreased to around 0.20 by March 2022, indicating improved leverage management. It remained relatively stable around 0.20 to 0.21 through mid-2023 despite minor debt fluctuations, reflecting a more conservative or balanced capital structure.
Overall, the data indicates the company experienced increased borrowing through 2019 and mid-2020, likely aligned with external factors or strategic financing decisions. Despite reaching a high leverage point in mid-2020, the subsequent period shows efforts to reduce debt levels and improve asset base, resulting in a more stable and lower debt-to-assets ratio by 2022 and 2023. The growth in total assets suggests expansion or reinvestment to support operations or growth initiatives.
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
- Total debt (including operating lease liability)
- The total debt showed a fluctuating pattern over the observed quarters. Initially, it declined from 2,852 million US dollars at March 31, 2018, to a low point of 2,381 million at December 31, 2018. Subsequently, debt levels increased sharply, peaking at 5,842 million by June 30, 2020. After this peak, debt decreased notably by December 31, 2021, reaching 4,085 million. In the following quarters up to June 30, 2023, total debt stabilized around the range of 4,100 to 4,400 million US dollars, suggesting a period of relatively stable leverage after prior fluctuations.
- Total assets
- Total assets exhibited a generally increasing trend throughout the timeframe. Starting at 10,026 million US dollars at March 31, 2018, assets rose steadily with minor volatility, reaching 20,309 million by June 30, 2023. The growth was particularly notable from March 31, 2021 onward, where assets increased from 14,689 million to nearly 20,000 million by mid-2023. This demonstrates a sustained expansion in asset base over the five-year period.
- Debt to assets ratio (including operating lease liability)
- The debt to assets ratio declined from 0.28 at the opening quarter of March 31, 2018, to a trough of 0.22 at December 31, 2018, reflecting debt reduction or asset growth. The ratio then increased markedly, peaking at 0.47 by June 30, 2020, which corresponds with the peak in total debt. Thereafter, the ratio steadily declined, indicating deleveraging and/or asset growth; it decreased to 0.20 by March 31, 2023, before stabilizing slightly at 0.22 by June 30, 2023. This pattern suggests an improved capital structure and reduced relative indebtedness in recent periods.
- Overall insights
- The data shows a period of debt buildup until mid-2020, likely aligned with external or internal strategic factors requiring increased leverage. Following this, a corrective phase ensued, reducing debt levels and improving the debt to assets ratio. The consistent growth in total assets indicates asset expansion, potentially through investment or acquisition activities. The diminishing debt to assets ratio in recent quarters implies prudent financial management aimed at strengthening balance sheet resilience. Stability in debt levels combined with rising assets portrays a favorable trend in financial structure over the final quarters observed.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
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 show a general increasing trend from March 31, 2018, through June 30, 2023. The value rose from approximately 10,026 million US dollars in early 2018 to 20,309 million US dollars by mid-2023. Notable growth periods include a steady rise between 2020 and 2022, where assets increased substantially from around 12,059 million to over 19,958 million US dollars. There was a slight decline in assets towards the end of 2022 heading into early 2023, but the overall trajectory remains upward.
- Total Stockholders’ Equity
- Stockholders' equity also reflects a generally upward movement across the same timeline, beginning at 3,438 million US dollars in early 2018 and rising to 10,725 million US dollars by mid-2023. The increase appears particularly strong from early 2020 onward, with a notable acceleration during 2021 and 2022, peaking in December 2021 at 9,010 million before continuing to grow. Some minor fluctuations are observable, including a modest dip around early 2023, but the overall trend is significantly positive.
- Financial Leverage
- The financial leverage ratio demonstrates a declining trend over the analyzed period. Initially, the ratio was relatively high at 2.92 in March 2018, indicating a greater use of debt relative to equity. Over the following years, this ratio decreased steadily, reaching a low of 1.89 by June 2023. This downward trend suggests the company has progressively reduced its reliance on debt financing compared to equity, improving its capital structure's stability. There was a noticeable spike in leverage around 2019 and early 2020, increasing to over 3.3, which then normalized and continued declining thereafter.
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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
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.
The earnings before interest and tax (EBIT) exhibit substantial volatility over the periods observed. Initially, EBIT shows a positive trend, rising from $69 million in March 2018 to a peak of $355 million in September 2018. However, this is followed by a sharp decline into negative territory starting in September 2019, reaching a low of -$530 million in June 2020. From this low point, EBIT gradually recovers, becoming positive again in December 2020 and subsequently increasing significantly, peaking at $2,337 million in September 2021. Following this peak, EBIT demonstrates a downward trend but remains positive through June 2023, ending at $641 million.
Interest expense remains relatively stable compared to EBIT, fluctuating within a range between $20 million and $92 million. The highest interest expense occurs around the end of 2020 and the beginning of 2021, with levels near $82-$92 million, and it gradually decreases afterward to $20 million by June 2023.
The interest coverage ratio shows notable shifts that correspond closely with the oscillations in EBIT. The ratio is strong and steady initially, with values exceeding 5 and peaking near 6.63 in June 2018. However, from the end of 2019 through the first half of 2021, the ratio enters negative territory, reaching its lowest point at approximately -7.27 around September 2020. This indicates an inability to cover interest expenses with earnings during that interval. Beginning in late 2021, the interest coverage ratio improves significantly, reaching very high levels above 20 during 2022, which reflects an enhanced capacity to meet interest obligations driven by improved EBIT performance. Towards mid-2023, the ratio slightly declines but remains elevated around 15.87.
- Summary of Trends
- EBIT experienced a pronounced cycle of growth, decline, and recovery, with a major downturn in 2019-2020 attributed to underlying operational challenges or external pressures, followed by a strong rebound through 2021 and early 2022.
- Interest expenses showed less variability, maintaining moderate levels despite EBIT fluctuations, suggesting stable debt servicing costs or fixed interest obligations.
- The interest coverage ratio corroborates the EBIT trend, highlighting a period of financial stress with coverage below zero around 2019-2020, then transitioning to strong coverage ratios indicating improved financial health and operating profitability post-2021.