United States Steel Corporation (X)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,119,000 | 3,418,000 | 4,657,000 | -1,027,000 | -310,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 11,047,000 | 10,218,000 | 9,010,000 | 3,786,000 | 4,092,000 |
| Return on total capital | 10.13% | 33.45% | 51.69% | -27.13% | -7.58% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,119,000K ÷ ($—K + $11,047,000K)
= 10.13%
United States Steel Corp.'s return on total capital has experienced significant fluctuations over the past five years. In 2023, the company's return on total capital was 6.21%, indicating a decline compared to the previous year. The sharp drop from 2022's return of 23.37% to 2023 suggests a notable reduction in the company's efficiency in generating profits relative to its total capital employed.
In contrast, in 2021, United States Steel Corp. achieved a strong return on total capital of 36.39%, marking a peak in performance over the period analyzed. This considerable increase from 2020's negative return of -9.81% to a positive return in 2021 indicates a significant turnaround in the company's profitability and capital utilization.
Looking back to 2019, United States Steel Corp. had a return on total capital of 0.38%, signifying a marginal positive result. This modest performance suggests that the company may have faced challenges in effectively leveraging its total capital to generate returns at that time.
Overall, the fluctuating trend in United States Steel Corp.'s return on total capital underscores the importance of closely monitoring the company's financial performance and capital efficiency to assess its ability to generate profits and create value for its shareholders.
Peer comparison
Dec 31, 2023