United States Steel Corporation (X)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	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
Revenue (ttm)	US$ in thousands	15,640,000	16,275,000	16,853,000	17,743,000	18,053,000	18,247,000	19,019,000	20,301,000	21,065,000	22,349,000	23,110,000	21,845,000	20,275,000	17,215,000	13,591,000	10,657,000	9,741,000	10,003,000	10,732,000	12,186,000
Property, plant and equipment	US$ in thousands	11,973,000	11,665,000	11,222,000	10,807,000	10,393,000	9,911,000	9,436,000	8,875,000	8,492,000	7,978,000	7,443,000	7,416,000	7,254,000	7,380,000	7,375,000	7,563,000	5,444,000	5,430,000	5,410,000	5,407,000
Fixed asset turnover		1.31	1.40	1.50	1.64	1.74	1.84	2.02	2.29	2.48	2.80	3.10	2.95	2.80	2.33	1.84	1.41	1.79	1.84	1.98	2.25

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,640,000K ÷ $11,973,000K
= 1.31

United States Steel Corporation's fixed asset turnover ratio has shown some fluctuations over the years, indicating varying efficiency in generating sales from its fixed assets. The ratio was 2.25 as of March 31, 2020, and declined gradually to 1.41 by March 31, 2021. This decrease suggests that the company was not utilizing its fixed assets as effectively to generate revenue during this period.

However, from March 31, 2021, onwards, there was an upward trend in the fixed asset turnover ratio, reaching a peak of 3.10 by June 30, 2022. This significant improvement indicates that the company was able to generate more revenue relative to its fixed asset base, reflecting increased efficiency in asset utilization.

Subsequently, the fixed asset turnover ratio began to decline, dropping to 1.31 by December 31, 2024. This decline may signal a potential decrease in revenue generated per dollar of fixed assets, raising concerns about asset efficiency.

Overall, United States Steel Corporation's fixed asset turnover ratio has exhibited fluctuations, with periods of both improvement and decline. Management should continue to monitor and optimize the company's asset utilization to maintain or enhance operational efficiency and profitability.