Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
United States Steel Corp., profitability 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).
Analysis of the quarterly financial data reveals several notable trends in profitability and returns over the observed periods.
- Gross Profit Margin
- The gross profit margin exhibits an initial moderate range near the early data points with some missing values, followed by a decline starting around the end of 2018 and continuing through 2020, reaching very low levels. Recovery begins in early 2021, with a sharp upward trend peaking near the end of 2021 and early 2022. A gradual decline occurs thereafter but margins remain substantially higher than the lowest points of 2020, indicating an overall cyclical pattern with periods of decline and recovery.
- Operating Profit Margin
- The operating profit margin follows a pattern similar to the gross margin but with more pronounced volatility. Initial positive margins deteriorate significantly during 2019 and 2020, turning negative and reaching substantial lows. A strong recovery trend initiates in early 2021, with margins rising steeply to a peak by late 2021 and maintaining elevated levels throughout 2022. A moderation trend appears in 2023, with margins declining but still positive, suggesting improved operational efficiency relative to the lows.
- Net Profit Margin
- The net profit margin also mirrors the trajectory of the gross and operating profit margins. It declines into negative territory during 2019 and 2020, indicating periods of net loss. This is succeeded by a marked rebound starting in 2021, with margins climbing to a peak towards the end of 2021 and sustaining elevated, albeit slightly declining, levels thereafter. The pattern suggests increased profitability and better control over costs or tax impacts post-2020 downturn.
- Return on Equity (ROE)
- ROE follows a similar trend, with solid positive returns in 2018 and early 2019, followed by a steep drop into negative values through 2019 and 2020. This sharp decline reflects poor profitability and/or equity write-downs during these periods. A robust recovery begins in early 2021, with ROE rising dramatically, peaking in late 2021 and early 2022 at very high levels before tapering off gradually during 2023. This indicates a strong improvement in generating shareholder returns post downturn.
- Return on Assets (ROA)
- ROA shows an initial positive range similar to ROE but with lower magnitudes, reflecting asset utilization efficiency. The ratio drops below zero during 2019 and 2020, consistent with operational and net losses, then exhibits a significant rebound starting in 2021. Peaks in ROA coincide with those of ROE, followed by a slow decline through 2023. The pattern suggests enhanced asset profitability and operational recovery aligned with broader profitability improvements.
Overall, the financial ratios illustrate a clear pattern of deterioration across profitability and return metrics through 2019 and 2020, corresponding to a period of financial stress or adverse market conditions. Beginning in 2021, there is a pronounced recovery across all ratios, reaching multi-year highs by late 2021 or early 2022, followed by a moderation but sustained profitability through 2023. This cyclical behavior highlights the company's ability to recover profitability and return performance after a significant downturn phase.
Return on Sales
Return on Investment
Gross Profit Margin
United States Steel Corp., gross profit margin 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) | |||||||||||||||||||||||||||||
| Gross profit (loss) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross profit (loss)Q2 2023
+ Gross profit (loss)Q1 2023
+ Gross profit (loss)Q4 2022
+ Gross profit (loss)Q3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations and trends in key performance metrics over the examined periods.
- Gross Profit (Loss)
- Gross profit exhibited significant variability, starting at 341 million USD in March 2018, peaking at 2083 million USD in September 2021, and then experiencing a general decline to 847 million USD by June 2023. Several quarters, particularly in 2020, reflected gross losses, most prominently in June 2020 with a loss of 183 million USD. This demonstrates substantial volatility in profitability, with sharp improvements in 2021 followed by a downturn through 2022 and early 2023.
- Net Sales
- Net sales followed a somewhat cyclical pattern over the timeframe. Initial figures in early 2018 were around 3,149 million USD, increasing to a peak of 5,964 million USD in September 2021. After this peak, net sales declined again to 4,470 million USD by March 2023, although they showed some recovery to 5,008 million USD in June 2023. The data suggests sensitivity to market conditions, with sales recovering substantially through 2021 but facing a decrease thereafter.
- Gross Profit Margin
- The gross profit margin was only sporadically available but presents an insightful progression. Margins ranged from a low of 0.48% in December 2020 to a high of 30.07% in December 2021. Early 2021 showed a strong upward trend in margin percentages, coinciding with increased gross profit and sales figures. However, post-2021, the margin displays a downward trajectory, falling to 13.73% by June 2023. This suggests improved operational efficiency or pricing power in 2021 that tapered off in subsequent periods.
- Overall Assessment
- The company exhibited a recovery in profitability and sales during 2021, aligning with improved gross profit margins. Despite this, the later periods indicate a retrenchment in both sales volume and profitability levels. The presence of gross losses during 2020 reflects a challenging environment, while the strong performance in 2021 highlights a period of substantial recovery. The decline in gross profit margin after 2021 suggests either increased costs, pricing pressures, or changes in product mix that impacted profitability sustainably. Monitoring these factors will be crucial for future financial performance.
Operating Profit Margin
United States Steel Corp., operating profit margin 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) | |||||||||||||||||||||||||||||
| Earnings (loss) before interest and income taxes | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Earnings (loss) before interest and income taxesQ2 2023
+ Earnings (loss) before interest and income taxesQ1 2023
+ Earnings (loss) before interest and income taxesQ4 2022
+ Earnings (loss) before interest and income taxesQ3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data exhibits notable fluctuations in key performance indicators over the observed quarters. Earnings before interest and income taxes demonstrate a general pattern of volatility. Initial periods reflect solid positive earnings, peaking around the fourth quarter of 2018, followed by a significant decline into negative territory throughout 2019 and early 2020. This decline reaches a nadir during the second quarter of 2020 before gradually recovering, culminating in robust earnings levels in late 2021. Subsequently, while earnings maintain positive figures, there is a visible downward trend in the last quarters up to mid-2023.
Net sales reveal a varying trajectory, with a general upward trend from early 2018 through early 2021, peaking in the third quarter of 2021. This peak is followed by fluctuations where sales dip significantly in the middle of 2022 but show some recovery toward the first half of 2023. Despite intermittent dips, the overall sales volumes remain higher in recent periods compared to the early years of the dataset.
Operating profit margin percentages, reported intermittently, mirror the pattern observed in earnings before interest and income taxes. Margins peak positively toward the end of 2018 and early 2019, then sharply decline into negative figures throughout 2019 and early 2020. A recovery phase ensues starting mid-2020, with margins improving substantially to reach a high point in the late 2021 quarters, followed by a moderate decline but still maintaining profitability through 2022 and mid-2023.
- Earnings before interest and income taxes
- The trajectory showcases a peak in earnings at the end of 2018, followed by a trough during the global economic disruptions in early 2020. A strong recovery phase between mid-2020 and late 2021 indicates improved operational efficiency or market conditions, with subsequent downward pressure observable in recent quarters.
- Net sales
- Sales volumes increase steadily from 2018 up to the peak in 2021, indicating growth or higher demand. Aside from a significant downturn in mid-2022, the sales stabilizing and partial recovery suggest resilience in market positioning or product demand.
- Operating profit margin
- Margins reflect profitability challenges aligned with earnings trends, with steep declines during 2019–2020 followed by a marked recovery that boosts margin levels through 2021. Although there is some easing of margins thereafter, the company sustains positive profitability in most recent periods.
In summary, the data portrays a period of considerable fluctuation driven potentially by market or economic disruptions around 2020, with a notable rebound in earnings and margins through 2021. The stabilization of sales and profitability metrics in 2022 and 2023 highlights ongoing adaptation to market conditions, though some softness in earnings suggests the presence of emerging challenges or cyclical factors impacting financial outcomes.
Net Profit Margin
United States Steel Corp., net profit margin 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 | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, 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
Net profit margin = 100
× (Net earnings (loss) attributable to United States Steel CorporationQ2 2023
+ Net earnings (loss) attributable to United States Steel CorporationQ1 2023
+ Net earnings (loss) attributable to United States Steel CorporationQ4 2022
+ Net earnings (loss) attributable to United States Steel CorporationQ3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net earnings attributable to the company display a marked volatility over the examined periods. Initial quarters in 2018 show a positive trend with incremental growth from 18 million to 592 million US dollars across the first four quarters. However, starting in the first quarter of 2019, net earnings fluctuate considerably, with losses materializing especially in the last three quarters of 2019, reaching a low of -668 million. Recovery is observed beginning in the first quarter of 2020, albeit with further losses persisting through the first three quarters. A consistent positive recovery trend is evident from the last quarter of 2020 through 2021, peaking at 2,002 million US dollars in the final quarter of that year. The first half of 2022 maintains profitability, though with declining net earnings compared to the prior year’s peak. The final quarters of 2022 and first half of 2023 show a reduction in net earnings with values stabilizing in the low hundreds of millions.
Net sales illustrate a somewhat cyclical pattern with some fluctuations in magnitude but a general upward trend toward the end of the timeline. From a baseline near 3,149 million US dollars in the first quarter of 2018, net sales increase and then display variability, falling significantly in 2020 coinciding with the periods of decreased net earnings. From 2021 onward, sales see a notable increase, reaching their peak at 5,964 million US dollars in the third quarter of 2021. Subsequently, sales moderate but remain above the earlier years’ levels, exhibiting values mostly above 4,000 million US dollars, signaling recovery and growth in turnover despite some fluctuations.
The net profit margin percentage demonstrates the variability in profitability relative to sales over time. Profit margins were positive and improving in early 2019, reaching a peak of approximately 7.92% but then sharply declining into negative territory through 2019 and 2020, paralleling the losses reported in net earnings. Beginning in late 2020, profitability margins initiate recovery, shifting back to positive territory from the first quarter of 2021 and becoming quite robust, peaking at 22.73% in the final quarter of 2021. Margins subsequently taper off but remain healthy and positive through 2022 and the first half of 2023, staying above 7%, which suggests ongoing operational leverage despite a decline from peak profitability.
In summary, the data reveals a cyclical business pattern strongly influenced by external factors impacting profitability and sales volume. The company endured significant losses during 2019 and 2020, which coincided with lower sales and negative profit margins. A strong rebound in both sales and profitability occurred from 2021 onwards, reaching multi-year highs before moderating slightly in 2022 and 2023. The overall trend indicates resilience and recovery with an emphasis on improved profit generation relative to sales in recent periods.
- Net Earnings
- Volatile with losses in 2019-2020, strong recovery peaking in late 2021, followed by moderation but sustained profitability through mid-2023.
- Net Sales
- General upward trend with a dip in 2020, peaking in 2021, and stabilizing above previous years’ levels thereafter.
- Net Profit Margin
- Sharp decline to negative margins in 2019-2020, significant recovery to high positive margins in 2021, remaining positive but reducing slightly in 2022-2023.
Return on Equity (ROE)
United States Steel Corp., ROE 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 | |||||||||||||||||||||||||||||
| Total United States Steel Corporation stockholders’ equity | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net earnings (loss) attributable to United States Steel CorporationQ2 2023
+ Net earnings (loss) attributable to United States Steel CorporationQ1 2023
+ Net earnings (loss) attributable to United States Steel CorporationQ4 2022
+ Net earnings (loss) attributable to United States Steel CorporationQ3 2022)
÷ Total United States Steel Corporation stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analyzed financial data reveals notable fluctuations and trends in the company's net earnings, stockholders’ equity, and return on equity (ROE) over the examined periods.
- Net Earnings (Loss)
- The net earnings show considerable volatility across the quarters. From March 2018 to December 2018, the net earnings increased significantly, peaking at 592 million US dollars by December 31, 2018. In the following year, 2019, earnings remained positive but declined overall, experiencing a sharp downturn starting in the third quarter, turning into losses with the lowest point at -668 million in the last quarter of 2019. Throughout 2020, the company continued to experience losses, though they gradually lessened, with a return to a modest profit in the final quarter (49 million US dollars). From 2021 onwards, earnings became consistently positive again and grew significantly, peaking at 2002 million in the fourth quarter of 2021. In 2022 and the first half of 2023, earnings remain positive but exhibit a declining trend compared to the 2021 peak, showing oscillations around lower values.
- Total Stockholders’ Equity
- The stockholders’ equity exhibits a general upward trend over the entire period. Beginning at 3,438 million US dollars in the first quarter of 2018, it progressively increased to reach 4,202 million by the end of 2018. The equity stabilized in 2019, with slight fluctuations and a peak at 4,311 million in the second quarter before declining to 3,449 million by the end of 2020. From 2021 through mid-2023, the equity increased sharply, nearly tripling from 4,627 million in the first quarter of 2021 to approximately 10,725 million by June 2023. This remarkable growth suggests retained earnings and possibly other equity contributions positively influenced the company's capitalization during this period.
- Return on Equity (ROE)
- The ROE data, available from March 2019 onward, corresponds closely with the earnings trends. It began at a robust 26.53% in the first quarter of 2019, increased to around 27.18% in the second quarter, and remained above 20% until the third quarter. In the last quarter of 2019, ROE sharply declined to 15% and then dropped into negative territory from March 2020 through December 2020, reaching as low as -54.57% in the fourth quarter of 2020. The negative ROE reflects the sustained net losses during this period. ROE turned positive again in the first quarter of 2021 (15.69%) and ascended sharply, peaking at 51.2% by the fourth quarter of 2021, aligning with the high net earnings reported. Subsequently, ROE gradually decreased throughout 2022 and into the first half of 2023, stabilizing at 12.49% by June 2023, which still indicates profitability but at a reduced return level compared to the 2021 peak.
In summary, the financial metrics reflect a challenging period around 2019 and 2020 characterized by losses and negative returns on equity. This was followed by a strong recovery throughout 2021 with record high earnings and ROE, alongside significant growth in stockholders' equity. Although earnings and ROE moderated after 2021, the company maintained profitability and continued growth in equity, indicating improved financial stability and resilience in recent quarters.
Return on Assets (ROA)
United States Steel Corp., ROA 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 | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net earnings (loss) attributable to United States Steel CorporationQ2 2023
+ Net earnings (loss) attributable to United States Steel CorporationQ1 2023
+ Net earnings (loss) attributable to United States Steel CorporationQ4 2022
+ Net earnings (loss) attributable to United States Steel CorporationQ3 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to United States Steel Corporation
- The net earnings show significant fluctuations over the periods analyzed. From early 2018 through 2019, earnings were relatively modest with occasional negative values, including substantial losses in the last quarter of 2019 (-668 million USD) and continuing into 2020 with losses in each quarter, the lowest being -589 million USD. Beginning in 2021, a marked improvement is observed, with net earnings turning positive and showing strong growth, peaking notably in Q4 2021 at 2,002 million USD. Throughout 2022 and into mid-2023, earnings remained positive but displayed a declining trend from the previous peak, reducing to 174 million USD by mid-2023.
- Total Assets
- Total assets demonstrate a steady upward trend across the periods. Starting at 10,026 million USD in Q1 2018, assets increased gradually, reaching 12,366 million USD by Q1 2020 despite the volatile earnings. Asset growth accelerated sharply from 2021 onward, surpassing 17,000 million USD in early 2021 and continuing to increase to over 20,000 million USD by mid-2023. This consistent asset growth suggests ongoing investment or acquisition activities despite fluctuations in profitability.
- Return on Assets (ROA)
- The ROA data, available from Q1 2019, reflects proportional fluctuations similar to net earnings. Initial quarters in 2019 showed strong positive returns between 8.9% and 10.32%. However, the performance declined sharply during 2019 and 2020, turning negative and reaching as low as -16.04% in Q4 2020. Beginning in 2021, the ROA recovered significantly, hitting a peak of 25.83% in Q3 2021, indicating improved operational efficiency and profitability relative to asset base. Despite a gradual decline after the peak, the ROA remained positive by mid-2023, though it declined to 6.6%, reflecting a moderation in profitability.
- Summary of Trends
- Overall, the financial data depicts a company undergoing volatility in profitability through 2019 and 2020, coupled with steady growth in asset base. Recovery and strong performance, especially in profitability metrics, are evident starting in 2021, peaking in late 2021, followed by a tapering trend through 2022 and mid-2023. The sustained asset growth alongside fluctuating earnings suggests resilience and continuing investment, while the return on assets reflects cyclical operational success and challenges over the period analyzed.