United States Steel Corporation (X)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	18,053,000	21,065,000	20,275,000	9,741,000	12,937,000
Property, plant and equipment	US$ in thousands	10,393,000	8,492,000	7,254,000	5,444,000	5,447,000
Fixed asset turnover		1.74	2.48	2.80	1.79	2.38

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $18,053,000K ÷ $10,393,000K
= 1.74

United States Steel Corp. has experienced fluctuations in its fixed asset turnover ratio over the past five years. The ratio measures how efficiently the company generates revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

In 2023, the fixed asset turnover ratio decreased to 1.74 from 2.48 in 2022, suggesting a decline in the efficiency of generating sales from fixed assets. This may indicate that the company is not effectively utilizing its fixed assets in the most productive manner compared to the previous year.

In 2021, the fixed asset turnover ratio was at its highest point at 2.80, indicating that the company was able to generate a significant amount of revenue relative to its investment in fixed assets. This suggests a high level of efficiency in utilizing fixed assets to drive sales.

The ratio decreased to 1.79 in 2020 from the previous year, potentially signaling a decrease in the efficiency of the company's fixed asset utilization.

In 2019, the fixed asset turnover ratio was 2.38, indicating that the company was efficiently generating sales from its investment in fixed assets.

Overall, the fluctuation in United States Steel Corp.'s fixed asset turnover ratio over the past five years may be indicative of varying levels of efficiency in utilizing its fixed assets to generate revenue. Further analysis and comparison with industry peers would provide additional insights into the company's performance in this aspect.