United States Steel Corporation (X)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 799,000 | 3,160,000 | 4,946,000 | -1,075,000 | -230,000 |
| Revenue | US$ in thousands | 18,053,000 | 21,065,000 | 20,275,000 | 9,741,000 | 12,937,000 |
| Operating profit margin | 4.43% | 15.00% | 24.39% | -11.04% | -1.78% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $799,000K ÷ $18,053,000K
= 4.43%
The operating profit margin of United States Steel Corp. has exhibited fluctuating trends over the past five years. In 2023, the operating profit margin decreased significantly to 4.61% from 14.60% in 2022, indicating a decline in the company's ability to generate profits from its core operations. This sharp drop may raise concerns about the company's operational efficiency and profitability in the current year.
In contrast, the company showed a strong operating profit margin of 22.32% in 2021, reflecting robust profitability and effective cost management. However, in 2020, the company reported a negative operating profit margin of -8.74%, suggesting that the company's operating expenses exceeded its revenue from core operations during that year. The negative margin in 2020 could be attributed to various factors, such as economic downturns, cost overruns, or operational inefficiencies.
Furthermore, in 2019, the operating profit margin was slightly negative at -0.39%, indicating operational challenges and potential inefficiencies in cost control. Overall, a declining trend in the operating profit margin over the years raises questions about the company's ability to sustain profitability and operational performance, highlighting the importance of closely monitoring cost structures and revenue generation strategies for future improvement.
Peer comparison
Dec 31, 2023