United States Steel Corp. (NYSE:X)

Gross Profit Margin

There is a notable fluctuation in the gross profit margin over the period. It decreased significantly from 13.21% in 2018 to a low of 1.88% in 2020, which indicates a period of diminishing profitability at the gross level. However, a sharp recovery is observed in 2021 when the margin surged to 28.32%, followed by a decrease to 20.36% in 2022. Despite the decline in the last year, the gross profit margin remained substantially higher than the levels seen in 2018 through 2020.

Operating Profit Margin

The operating profit margin shows a similar volatility pattern. Starting at 7.93% in 2018, the margin turned negative in 2019 (-1.78%) and further declined to -11.04% in 2020, reflecting operational difficulties or increased expenses relative to revenue. A significant turnaround occurs in 2021 with a strong positive margin of 24.39%, though it decreases to 15% in 2022. This suggests improved operational efficiency or cost control after the losses but some variability persists.

Net Profit Margin

The net profit margin also reflects a challenging period in 2019 and 2020, with negative figures of -4.87% and -11.96%, respectively. This indicates that the company experienced net losses during these years. A recovery is evident in 2021, where the margin increased to 20.59%, followed by a moderate decline to 11.98% in 2022. The positive margins in the last two years demonstrate a return to profitability, although the margin has not reached the peak levels seen in 2021.

Return on Equity (ROE)

The ROE displays substantial volatility and extreme fluctuations. From a strong 26.53% in 2018, it plunged to negative territory in 2019 (-15.4%) and further deteriorated to -30.77% in 2020. This suggests significant losses relative to shareholders' equity. A dramatic recovery is observed in 2021, where ROE peaked at 46.33%, followed by a decline to 24.7% in 2022, which, while lower than the peak, remains positive and indicative of a profitable use of equity capital.

Return on Assets (ROA)

ROA trends are consistent with the other profitability measures. It decreased from 10.15% in 2018 to negative values in 2019 (-5.43%) and 2020 (-9.66%), reflecting asset inefficiency or losses. Subsequently, ROA improved sharply to 23.43% in 2021 before declining to 12.97% in 2022. The positive ROA in recent years signals better asset utilization and overall profitability.

The financial data reveals notable fluctuations in key performance metrics over the five-year period ending in 2022. Net sales exhibited a decline from 2018 through 2020, decreasing from approximately $14.2 billion to $9.7 billion. However, a significant recovery occurred in 2021 and 2022, with revenues rising sharply to $20.3 billion and $21.1 billion, respectively, surpassing earlier levels.

Gross profit mirrored a similar trend but with more pronounced volatility. Starting at $1.87 billion in 2018, it dropped substantially to $183 million in 2020, followed by a robust rebound to $5.74 billion in 2021. Although there was a decrease to $4.29 billion in 2022, the gross profit remains well above pre-2021 levels, indicating improved profitability despite the recent decline.

The gross profit margin percentage reflects these movements vividly. Margin values decreased steadily from 13.21% in 2018 to a low of 1.88% in 2020, suggesting significant margin pressure during that period. A dramatic margin improvement was recorded in 2021 at 28.32%, followed by a moderate contraction to 20.36% in 2022. Despite this reduction, the margins in the last two years are substantially higher than in the previous years, implying enhanced operational efficiency or favorable pricing conditions.

Summary of trends

The data indicates a period of downturn in revenue and profitability until 2020, likely influenced by adverse market or operational conditions.

A marked recovery occurred in 2021 with both revenues and gross profits exceeding past levels, accompanied by significantly improved profit margins.

While 2022 shows a slight decrease from 2021’s peaks, the company maintains a stronger financial position compared to the earlier years, sustaining healthier margins and sales figures.

Earnings (loss) before interest and income taxes

The earnings before interest and income taxes experienced significant fluctuations over the observed periods. Starting at a positive value of 1,124 million USD in 2018, it dropped to a loss of 230 million USD in 2019 and further declined to a greater loss of 1,075 million USD in 2020. However, there was a strong recovery in 2021 with earnings rising sharply to 4,946 million USD, followed by a decrease to 3,160 million USD in 2022. This indicates considerable volatility with a major turnaround after 2020.

Net Sales

Net sales showed a declining trend from 14,178 million USD in 2018 to 9,741 million USD in 2020, reflecting a reduction over these years. From 2020 onwards, net sales increased significantly, reaching 20,275 million USD in 2021 and slightly rising again to 21,065 million USD in 2022. Overall, there was a period of contraction followed by substantial expansion in sales.

Operating Profit Margin

The operating profit margin mirrored the volatility of earnings. It began moderately positive at 7.93% in 2018, turned negative in 2019 at -1.78%, and worsened to -11.04% in 2020, indicating operational difficulties during these years. A strong recovery followed in 2021, with the margin improving to 24.39%, although it declined to 15% in 2022. This pattern reflects operational challenges followed by improved profitability and a slight margin contraction in the latest year.

Net earnings (loss) attributable to United States Steel Corporation

There is a significant fluctuation in net earnings over the five-year period. Starting from a positive net earning of 1,115 million USD in 2018, the company experienced losses in both 2019 and 2020, with the net loss deepening to -1,165 million USD in 2020. However, there was a strong recovery in 2021, with net earnings rising sharply to 4,174 million USD. In 2022, although net earnings declined from the previous year, they remained solid at 2,524 million USD, indicating sustained profitability.

Net sales

Net sales demonstrated variability, initially declining from 14,178 million USD in 2018 to 9,741 million USD in 2020. This downward trend reflects a decrease in revenue generation. However, net sales rebounded significantly in 2021, rising to 20,275 million USD, and further increased slightly in 2022 to 21,065 million USD. This recovery suggests a strong resurgence in business activity and market demand.

Net profit margin

The net profit margin mirrors the net earnings trend, showing negative values in 2019 and 2020 (-4.87% and -11.96%, respectively), which indicates the company was operating at a loss relative to its sales during these years. A dramatic improvement occurred in 2021, with the margin reaching a high of 20.59%, reflecting strong profitability in relation to sales. This margin decreased to 11.98% in 2022 but remained positive and relatively healthy, indicating continued efficient management of costs and revenues.

The financial data reveals significant fluctuations in the key performance indicators of the company over the five-year period ending December 31, 2022.

Net Earnings (Loss) Attributable

The net earnings exhibit considerable volatility. The company reported a profit of US$1,115 million in 2018, followed by losses in 2019 and 2020 amounting to -US$630 million and -US$1,165 million, respectively. Subsequently, a strong recovery is observed with net earnings rising sharply to US$4,174 million in 2021, before decreasing to US$2,524 million in 2022. This pattern indicates a period of financial difficulty during 2019 and 2020, followed by substantial profitability in the subsequent two years, although with a reduction in earnings in the latest year.

Total Stockholders’ Equity

Total equity declined moderately from US$4,202 million in 2018 to US$3,786 million in 2020, reflecting the financial challenges during this timeframe. This was followed by a marked increase in equity, reaching US$9,010 million in 2021 and further rising to US$10,218 million in 2022. The growth in equity during the last two years correlates with the improved earnings and suggests a strengthening of the company's financial position.

Return on Equity (ROE)

The ROE mirrors the earnings trend, starting at 26.53% in 2018, then turning negative in 2019 (-15.4%) and 2020 (-30.77%), showing losses and poor profitability relative to equity. The ROE rebounded substantially to 46.33% in 2021, indicating highly efficient use of equity to generate profits, before decreasing to a still respectable 24.7% in 2022. This pattern highlights the transition from a period of financial strain to one of robust profitability, although with some moderation in 2022.

Overall, the data depicts a company that faced significant operational and financial challenges during 2019 and 2020, which adversely impacted profitability and equity. The recovery starting in 2021 resulted in strong earnings and equity growth, along with improved returns to shareholders. However, the reduction in net earnings and ROE in 2022 suggests some softening of momentum that may warrant monitoring in subsequent periods.

Net Earnings (Loss) Attributable to United States Steel Corporation

The net earnings exhibited significant volatility over the analyzed periods. Initially, there was a positive earning of $1,115 million in the year ending 2018. This was followed by consecutive losses in 2019 and 2020, amounting to negative $630 million and negative $1,165 million, respectively. In the years 2021 and 2022, earnings rebounded strongly to $4,174 million and $2,524 million, respectively, indicating a substantial recovery and improved profitability in the latter years.

Total Assets

Total assets demonstrated a steady upward trend throughout the period. Beginning at $10,982 million in 2018, the asset base gradually increased each year, reaching $11,608 million in 2019 and $12,059 million in 2020. A more pronounced growth occurred in 2021, with total assets rising sharply to $17,816 million, followed by a continued increase to $19,458 million in 2022. This indicates ongoing asset expansion, particularly notable after 2020.

Return on Assets (ROA)

The return on assets mirrored the volatility observed in net earnings. ROA started positively at 10.15% in 2018 but declined to negative values in the subsequent two years: -5.43% in 2019 and -9.66% in 2020. This decline aligns with the reported net losses for those years. In 2021, ROA recovered sharply to 23.43%, indicating efficient utilization of assets and high profitability, before declining to 12.97% in 2022, which, while lower than 2021, remained significantly above the negative values earlier in the period.

Overall Observations

The data reflects a period of financial instability in 2019 and 2020, characterized by losses and negative returns. Nonetheless, there is a clear recovery trend starting in 2021, both in terms of earnings and asset efficiency. The continuous increase in total assets suggests strategic growth or investment activities, supporting the improved profitability observed in the later years.