United States Steel Corporation (X)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 462,000 | 410,000 | 653,000 | 1,053,000 | 1,119,000 | 1,532,000 | 1,857,000 | 2,517,000 | 3,418,000 | 4,238,000 | 5,893,000 | 5,651,000 | 4,657,000 | 3,617,000 | 1,106,000 | -483,000 | -1,027,000 | -1,466,000 | -1,388,000 | -766,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 11,347,000 | 11,578,000 | 11,393,000 | 11,199,000 | 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 |
| Return on total capital | 4.07% | 3.54% | 5.73% | 9.40% | 10.13% | 13.92% | 17.31% | 24.43% | 33.45% | 40.61% | 57.79% | 58.27% | 51.69% | 45.69% | 18.90% | -10.44% | -27.13% | -42.51% | -38.37% | -20.56% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $462,000K ÷ ($—K + $11,347,000K)
= 4.07%
United States Steel Corporation's return on total capital has displayed significant fluctuations over the reported periods. Starting from negative values in early 2020, indicating the company was not generating sufficient returns relative to its total capital, the trend improved drastically throughout 2021 and 2022.
From March 2021 to June 2022, the return on total capital increased exponentially, indicating a rapid improvement in the company's efficiency in generating profits. The peak was observed in March 2022 at 58.27%, showcasing a significant enhancement in capital utilization efficiency.
However, the return on total capital started to decline from June 2022, although it remained positive and relatively stable until the end of 2024. The values fluctuated around the 10% mark, with a slight increase recorded in December 2024.
Overall, the trend in return on total capital for United States Steel Corporation reflects a period of substantial improvement in capital efficiency, followed by a phase of stabilization at positive but lower levels. Monitoring this ratio is crucial for assessing the company's ability to generate favorable returns on its total invested capital.
Peer comparison
Dec 31, 2024