United States Steel Corporation (X)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	895,000	1,149,000	1,340,000	1,841,000	2,524,000	3,419,000	4,931,000	4,965,000	4,174,000	3,154,000	918,000	-683,000	-1,165,000	-1,882,000	-1,732,000	-1,075,000	-630,000	630,000	1,005,000	1,151,000
Total stockholders’ equity	US$ in thousands	11,047,000	11,004,000	10,725,000	10,302,000	10,218,000	10,437,000	10,198,000	9,698,000	9,010,000	7,916,000	5,851,000	4,627,000	3,786,000	3,449,000	3,617,000	3,725,000	4,092,000	4,199,000	4,311,000	4,235,000
ROE		8.10%	10.44%	12.49%	17.87%	24.70%	32.76%	48.35%	51.20%	46.33%	39.84%	15.69%	-14.76%	-30.77%	-54.57%	-47.88%	-28.86%	-15.40%	15.00%	23.31%	27.18%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $895,000K ÷ $11,047,000K
= 8.10%

United States Steel Corp.'s return on equity (ROE) has experienced a declining trend over the past eight quarters. The ROE decreased from 51.20% in Q1 2022 to 8.10% in Q4 2023. This downward trend may indicate a decrease in the company's profitability relative to its shareholders' equity.

The ROE's peak in Q2 2022 at 48.35% suggests strong profitability and efficient utilization of equity during that period. However, the subsequent sharp decrease in Q3 2022 to 32.76% followed by a continued decline, reaching 8.10% in Q4 2023, signals potential challenges in generating profits relative to shareholders' equity.

The decreasing ROE could be attributed to various factors such as lower net income, increased debt levels, or inefficient use of assets, all of which can impact a company's profitability and shareholder returns. It would be prudent for stakeholders to closely monitor the company's financial performance and assess the effectiveness of its strategic initiatives to reverse this declining trend in ROE.