United States Steel Corporation (X)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.54% | 17.15% | 24.11% | -5.13% | -8.87% |
| Operating profit margin | 4.43% | 15.00% | 24.39% | -11.04% | -1.78% |
| Pretax margin | 5.80% | 15.47% | 21.43% | -13.42% | -3.49% |
| Net profit margin | 4.96% | 11.98% | 20.59% | -11.96% | -4.87% |
The profitability ratios of United States Steel Corp. have shown significant fluctuations over the past five years.
The gross profit margin has declined steadily from 28.32% in 2021 to 12.46% in 2023, indicating a decrease in the company's ability to generate profits from its core manufacturing activities.
The operating profit margin has also shown a downward trend, falling from 22.32% in 2021 to 4.61% in 2023. This suggests that the company's operating expenses have increased relative to its revenue, leading to lower profitability levels.
Similarly, the pretax margin has decreased from 21.43% in 2021 to 5.80% in 2023, reflecting that the company's profitability before taxes has weakened over the years.
The net profit margin has followed a similar pattern, declining from 20.59% in 2021 to 4.96% in 2023. This indicates that the company's bottom-line profitability, after accounting for all expenses and taxes, has been negatively impacted.
Overall, the declining trend in all profitability ratios signals potential challenges for United States Steel Corp. in maintaining and improving its profitability levels in the current business environment. Further analysis of the company's financial performance and operational strategies may be necessary to address these issues and enhance its overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.91% | 16.24% | 27.76% | -8.91% | -1.98% |
| Return on assets (ROA) | 4.38% | 12.97% | 23.43% | -9.66% | -5.43% |
| Return on total capital | 10.13% | 33.45% | 51.69% | -27.13% | -7.58% |
| Return on equity (ROE) | 8.10% | 24.70% | 46.33% | -30.77% | -15.40% |
United States Steel Corp.'s profitability ratios show mixed performance over the past five years. Operating return on assets (Operating ROA) decreased from 25.40% in 2021 to 4.07% in 2023, indicating a decline in the company's ability to generate operating income from its assets. Return on assets (ROA) also decreased from 23.43% in 2021 to 4.38% in 2023, reflecting a decline in overall profitability relative to total assets.
On the other hand, return on total capital and return on equity (ROE) both showed more favorable trends. Return on total capital increased from 36.39% in 2021 to 6.21% in 2023, pointing to the company's ability to generate income for both debt and equity stakeholders. ROE increased from 46.33% in 2021 to 8.10% in 2023, reflecting a stronger return for equity investors.
However, it is important to note that the negative values in some years, such as the negative return on assets and return on equity in 2020 and 2019, indicate periods of financial difficulties and inefficiencies in utilizing assets and equity resources. This suggests that United States Steel Corp. has experienced fluctuations in profitability over the analyzed period, impacted by various internal and external factors influencing its financial performance.