Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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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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Long-term Activity Ratios (Summary)
United States Steel Corp., long-term (investment) activity 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).
The analysis of the quarterly financial ratios reveals several notable trends over the observed periods. There is a general decline in turnover ratios from 2019 through early 2021, followed by a recovery phase, although the levels do not consistently return to their earlier peaks.
- Net Fixed Asset Turnover
- This ratio exhibits a steady decline from 2.91 in March 2019 to a low of 1.41 in March 2021, indicating a reduction in the efficiency of utilizing net fixed assets to generate sales. Post-March 2021, the ratio improves, reaching 3.1 in June 2022, suggesting enhanced asset utilization or increased sales relative to fixed assets. However, the ratio slightly decreases again, settling at 2.02 by June 2023.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The trend closely mirrors that of the net fixed asset turnover without leases, with a decline from 2.78 in March 2019 to 1.37 in March 2021, followed by a recovery to a peak of 3.04 in June 2022. Afterward, it declines to 1.99 by June 2023. The inclusion of right-of-use assets consistently results in slightly lower turnover ratios compared to the traditional measure, reflecting the asset base adjustment due to lease accounting.
- Total Asset Turnover
- The total asset turnover ratio shows a gradual decrease from 1.3 in March 2019 to 0.73 in March 2021, indicating reduced overall asset efficiency in generating revenue. A recovery trend is observed through 2021 and into early 2022, peaking at 1.16 in June 2022. Subsequently, the ratio declines again, reaching 0.94 in June 2023, which may reflect challenges in sustaining efficient asset use or revenue levels.
- Equity Turnover
- This ratio decreases from 3.43 in March 2019 to 2.3 in March 2021, showing a reduction in the use of equity to generate sales. Unlike the other turnover ratios, the recovery is less pronounced and more volatile, with modest fluctuations around the 2.2 mark through 2021 and 2022, and a further decline to 1.77 by June 2023. The sustained downward trend towards the end of the period suggests deteriorating efficiency in employing equity capital.
Overall, the data indicates that the company experienced declining efficiency in asset and equity utilization through 2020 into early 2021, likely influenced by broader market or operational challenges during this period. While a recovery phase emerges starting mid-2021, it is not fully sustained, and turnover ratios in mid-2023 remain below pre-2019 levels. This pattern highlights ongoing operational adjustments or market pressures affecting the company's ability to convert assets and equity into revenue efficiently.
Net Fixed Asset Turnover
United States Steel Corp., net fixed asset turnover 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 sales | ||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, 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
Net fixed asset turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis reveals several notable trends in the financial performance and asset utilization over the evaluated periods.
- Net Sales
- Net sales exhibited fluctuations across quarters, with a downward trend from early 2019 through mid-2020, reaching a low point in June 2020. Subsequently, sales recovered significantly during 2021, peaking in the third quarter of 2021. This recovery was followed by some volatility and a decline in the last quarter of 2022, with a partial rebound into mid-2023.
- Property, Plant, and Equipment (Net)
- The net value of property, plant, and equipment consistently increased over the entire period. Starting from below 5,000 million USD in early 2019, it grew steadily, surpassing 9,000 million USD by mid-2023. This indicates ongoing capital investment or asset revaluation contributing to expansion or modernization efforts.
- Net Fixed Asset Turnover Ratio
- The ratio showed a downward trend from early 2019 until the end of 2020, indicating decreasing efficiency in generating sales from fixed assets during these periods. This trend reversed starting in 2021, with turnover improving markedly and reaching a peak in mid-2022. Afterward, the ratio declined again through mid-2023, suggesting fluctuations in asset utilization efficiency.
In summary, the data demonstrates a phase of sales contraction followed by robust recovery and some recent volatility. Asset base expansion was continuous throughout, which initially corresponded with declining asset turnover efficiency but later showed improvements before a recent decline. These patterns suggest periods of investment and adjustment impacting sales generation relative to fixed assets.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
United States Steel Corp., net fixed asset turnover (including operating lease, right-of-use asset) 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
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
The financial data reveals several significant trends in sales performance, asset investment, and asset utilization over the analyzed periods.
- Net Sales
- Net sales displayed a fluctuating trajectory across the quarterly periods. Initially, sales showed a declining trend from early 2019 through mid-2020, reaching a low point during the second quarter of 2020. However, from late 2020 onwards, sales rebounded strongly, peaking around mid to late 2021. Following this peak, sales experienced some volatility, with a noticeable decline in the last quarters of 2022 and early 2023 but showed signs of recovery by mid-2023. Overall, the sales data indicate sensitivity to market or operational conditions, with periods of contraction followed by recovery.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment demonstrated a steady increase throughout the periods under review. Starting at a value just above $5.2 billion in early 2019, this asset base grew consistently, surpassing $9.5 billion by mid-2023. This upward trend reflects ongoing capital investment or acquisition of fixed assets, suggesting a strategy focused on expanding operational capacity or renewing infrastructure.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures how efficiently the company utilized its fixed assets to generate sales, showed a declining trend from early 2019 to the end of 2020. During this phase, the ratio decreased from 2.78 to 1.72, indicating a reduction in asset utilization efficiency, possibly due to increased asset base not immediately translating into proportional sales gains. After this low point, the ratio improved significantly through 2021 and into 2022, reaching a peak of 3.04, suggesting enhanced efficiency in asset use. Nonetheless, this improvement was not sustained, as the ratio declined again in 2023, pointing to renewed challenges in maintaining efficient asset turnover.
In summary, the period covered reveals a pattern of initial contraction in sales and asset utilization efficiency, followed by capital expansion and recovery in operational efficiency and sales. However, the recent downturn in both sales and asset turnover ratio towards 2023 may warrant further analysis to understand underlying causes and potential strategic adjustments.
Total Asset Turnover
United States Steel Corp., total asset turnover calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, 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
Total asset turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a downward trend from March 2019 through June 2020, declining from 3,499 million USD to a low of 2,091 million USD. Starting from the third quarter of 2020, sales began to recover significantly, reaching a peak of 5,964 million USD in the third quarter of 2021. Following this peak, net sales showed some volatility with a general declining pattern through December 2022, dropping to 4,338 million USD, before experiencing a moderate rebound to 5,008 million USD by June 2023.
- Total Assets
- Total assets increased steadily over the entire period. Starting at 11,152 million USD in March 2019, assets grew consistently, reaching 20,309 million USD by June 2023. This represents almost a doubling in total assets, reflecting possible expansions or capital investments despite fluctuations in sales.
- Total Asset Turnover
- Total asset turnover declined notably from 1.3 in March 2019 to a low of 0.73 in March 2021, indicating a decreasing efficiency in using assets to generate sales. After March 2021, this ratio improved, peaking at 1.16 in June 2022, suggesting a temporary improvement in asset utilization. However, in the subsequent quarters, asset turnover showed a gradual decline again, reaching 0.94 by June 2023, implying a slight reduction in the efficiency of asset use in generating revenue.
- Overall Analysis
- Despite the steady increase in total assets over the period, net sales demonstrated significant volatility, particularly affected during early 2020 likely due to external economic factors, followed by a robust recovery phase through mid-2021. The asset turnover ratio’s downward trend in the early periods reflects the company's reduced efficiency in utilizing its growing asset base to generate sales, although some recovery from early 2021 to mid-2022 points to improved operational efficiency during that time. The subsequent decline suggests ongoing challenges in maintaining asset productivity in line with asset growth. This dynamic indicates a need to monitor asset allocation and sales strategies to enhance returns on investments.
Equity Turnover
United States Steel Corp., equity turnover 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 sales | ||||||||||||||||||||||||
| Total United States Steel Corporation stockholders’ equity | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, 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
Equity turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Total United States Steel Corporation stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
-
Net sales demonstrated notable volatility across the examined periods, with an initial decline observed from early 2019 through mid-2020, dropping from approximately 3,499 million USD to around 2,091 million USD. This decline likely reflects adverse market or operational conditions during this timeframe.
Beginning in the latter half of 2020, net sales showed a strong recovery and upward trend, peaking around mid-2021 at approximately 5,964 million USD. Following this peak, fluctuations persisted, with values decreasing in late 2022 and early 2023, though remaining higher than the lows seen during 2020.
- Total Stockholders’ Equity
-
Stockholders’ equity revealed a declining pattern in 2019 and the first half of 2020, reducing from about 4,235 million USD to 3,449 million USD. This decline may be related to performance challenges or capital structure adjustments during this period.
From late 2020 onward, equity progressively increased, reaching a peak near 10,437 million USD by late 2022, indicating substantial growth in net assets or retained earnings. In early 2023, equity values stabilized slightly above 10,000 million USD.
- Equity Turnover Ratio
-
The equity turnover ratio experienced a gradual and consistent decline over the entire period under review. Starting at a high of 3.43 in early 2019, the ratio reduced steadily to a low of 1.77 by mid-2023.
This declining trend suggests that net sales generated per unit of equity decreased over time, reflective possibly of greater equity accumulation relative to sales growth or changing operational efficiencies.