United States Steel Corporation (X)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	12,937,000	14,876,000	15,158,000	14,855,000
Property, plant and equipment	US$ in thousands	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	5,447,000	5,310,000	5,233,000	4,989,000
Fixed asset turnover		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	2.38	2.80	2.90	2.98

December 31, 2023 calculation

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

United States Steel Corp.'s fixed asset turnover has shown a declining trend over the past few quarters, starting at 3.10 in Q2 2022 and decreasing to 1.74 in Q4 2023. This indicates that the company is generating less revenue for every dollar invested in fixed assets. A fixed asset turnover below 1 may suggest underutilization or inefficiency in managing fixed assets.

The decreasing trend could be a cause for concern, as it may indicate decreasing efficiency in utilizing fixed assets to generate revenue. Management should closely monitor and evaluate the use and performance of fixed assets to improve operational efficiency and profitability in the upcoming quarters. It is important for the company to focus on optimizing the utilization of its fixed assets to enhance productivity and profitability in the long run.