United States Steel Corporation (X)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 20,451,000 | 19,458,000 | 17,816,000 | 12,059,000 | 11,608,000 |
| Operating ROA | 3.91% | 16.24% | 27.76% | -8.91% | -1.98% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $799,000K ÷ $20,451,000K
= 3.91%
United States Steel Corp.'s operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA was at 4.07%, a decrease from 15.80% in 2022 and a significant drop from 25.40% in 2021. The negative trend observed in 2020 with an operating ROA of -7.06% continued from the previous year when it was -0.43% in 2019.
The downward trend in the operating ROA from 2021 to 2023 indicates a decline in the company's ability to generate operating income relative to its total assets. This may signal operational inefficiencies, declining profitability, or reduced asset utilization within the organization.
The sharp decrease in operating ROA from 2021 to 2023 warrants further investigation into the company's operational performance, asset management practices, and overall financial health to identify underlying issues and implement strategies for improvement. Analyzing the reasons behind the decrease in operating ROA can help management make informed decisions to enhance the company's financial performance and sustainability.
Peer comparison
Dec 31, 2023