United States Steel Corporation (X)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.78 | 1.85 | 1.90 | 1.98 | 3.19 |
The solvency ratios of United States Steel Corporation, as indicated by the provided data, reflect a consistently strong financial position over the years.
1. Debt-to-assets ratio: The company maintains a Debt-to-assets ratio of 0.00 across all reported years, suggesting that there is no debt in relation to total assets. This indicates a low risk of insolvency due to debt obligations.
2. Debt-to-capital ratio: Similarly, the Debt-to-capital ratio remains at 0.00 throughout the years, indicating that the company's debt in relation to its total capital (equity + debt) is negligible. This signifies a stable financial structure with a low reliance on debt financing.
3. Debt-to-equity ratio: The Debt-to-equity ratio also stands at 0.00 for all reported periods, implying that the company's debt is essentially non-existent in comparison to its equity. This signifies a strong equity base and lower financial risk associated with debt leverage.
4. Financial leverage ratio: The Financial leverage ratio declines progressively from 3.19 in 2020 to 1.78 in 2024. This signals a reduction in financial leverage over time, indicating a more conservative capital structure and decreased reliance on debt financing for operations.
Overall, the solvency ratios of United States Steel Corporation suggest a prudent and conservative approach to managing financial obligations, with minimal debt levels in proportion to assets, capital, and equity. The decreasing trend in the financial leverage ratio further underscores the company's efforts to strengthen its financial position and reduce risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 19.25 | 15.54 | 21.50 | 14.88 | -3.67 |
United States Steel Corporation's interest coverage ratio has shown significant improvement over the years. In December 2020, the company had an interest coverage ratio of -3.67, indicating that its operating income was not sufficient to cover its interest expenses. However, by December 2021, the interest coverage ratio had improved to 14.88, reflecting a more favorable position where the company's operating income could cover its interest obligations nearly 15 times.
Furthermore, the trend of improvement continued in the subsequent years, with the interest coverage ratios reaching 21.50 in December 2022, 15.54 in December 2023, and 19.25 in December 2024. These figures suggest that United States Steel Corporation's ability to meet its interest payments has strengthened over time, signifying better financial health and reduced default risk.