United States Steel Corporation (X)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	1,367,000	2,948,000	3,504,000	2,522,000	1,985,000
Short-term investments	US$ in thousands	—	-32,000	—	-34,000	1,177,000
Total current liabilities	US$ in thousands	3,373,000	3,948,000	3,959,000	3,852,000	2,656,000
Cash ratio		0.41	0.74	0.89	0.65	1.19

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,367,000K + $—K) ÷ $3,373,000K
= 0.41

Based on the provided data, the cash ratio of United States Steel Corporation has fluctuated over the past five years. The cash ratio indicates a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In December 2020, the cash ratio was 1.19, which implies that the company had $1.19 in cash and cash equivalents for every $1 of its current liabilities. This suggests a strong liquidity position at that time.

However, the cash ratio decreased to 0.65 by December 31, 2021, indicating a decline in the company's ability to cover its short-term obligations solely with cash and cash equivalents. This may suggest potential liquidity challenges or a shift in the company's cash management practices.

By December 31, 2022, the cash ratio improved to 0.89, showing some recovery in liquidity compared to the previous year. The increase in the cash ratio may indicate better cash management or an increase in cash reserves relative to short-term liabilities.

Subsequently, the cash ratio dropped to 0.74 by December 31, 2023, indicating a slight decrease in liquidity compared to the previous year. This could signal a need for the company to closely monitor its cash position and short-term obligations.

Finally, as of December 31, 2024, the cash ratio fell to 0.41, the lowest level in the five-year period. This significant drop in the cash ratio may raise concerns about the company's ability to meet its short-term liabilities with its existing cash resources.

In summary, the fluctuating trend in United States Steel Corporation's cash ratio over the five-year period suggests variable liquidity positions and highlights the importance of closely monitoring cash management practices and short-term liquidity needs.