United States Steel Corporation (X)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 895,000 | 2,524,000 | 4,174,000 | -1,165,000 | -630,000 |
| Total stockholders’ equity | US$ in thousands | 11,047,000 | 10,218,000 | 9,010,000 | 3,786,000 | 4,092,000 |
| ROE | 8.10% | 24.70% | 46.33% | -30.77% | -15.40% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $895,000K ÷ $11,047,000K
= 8.10%
United States Steel Corp.'s return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the ROE stood at 8.10%, representing a notable decline from the previous year's 24.70%. This decrease indicates a weakening in the company's ability to generate profits from shareholders' equity during 2023.
Comparing the latest ROE figure to 2021, where the ROE was 46.33%, there has been a substantial decrease in profitability efficiency. This significant decline may raise concerns about the company's operational efficiency and management of resources.
The negative ROE figures in 2020 (-30.77%) and 2019 (-15.40%) are particularly alarming as they indicate that the company incurred losses in those years. This underscores the challenges faced by United States Steel Corp. in generating returns for its equity holders during those periods.
Overall, the trend in United States Steel Corp.'s ROE shows inconsistency and volatility, reflecting fluctuations in the company's profitability and operational performance over the past five years. Investors and stakeholders may need to closely monitor the company's financial health and management strategies to assess its ability to deliver sustainable returns in the future.
Peer comparison
Dec 31, 2023