United States Steel Corporation (X)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.85 | 1.90 | 1.98 | 3.19 | 2.84 |
United States Steel Corp.'s solvency ratios indicate its ability to meet its long-term financial obligations. The trends in the solvency ratios over the past five years show improvements in the company's financial leverage.
The debt-to-assets ratio has been relatively stable, indicating that around 21-22% of the company's assets are financed by debt. This suggests a prudent approach to managing its debt levels.
The debt-to-capital ratio has also shown consistency, hovering around 28-30%, which implies that the company relies on debt for about a quarter to a third of its total capital structure.
The debt-to-equity ratio has seen a declining trend from 1.29 in 2020 to 0.38 in 2023. This indicates that the company's reliance on debt in comparison to equity has reduced significantly over the years, reflecting a stronger equity base.
The financial leverage ratio has also shown improvement, declining from 3.19 in 2020 to 1.85 in 2023. This suggests that the company has been successful in reducing financial risk by decreasing its reliance on debt to finance its operations.
Overall, the trend in United States Steel Corp.'s solvency ratios indicates a more stable and less leveraged financial position compared to previous years, which could enhance its ability to withstand economic downturns and navigate financial challenges.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 15.54 | 21.50 | 14.88 | -3.67 | -2.18 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. United States Steel Corp.'s interest coverage has shown fluctuations over the past five years, as illustrated by the table provided.
In 2019, the interest coverage ratio was 0.23, indicating that the company barely generated enough earnings to cover its interest expenses. This might have raised concerns about the company's ability to meet its debt obligations.
In 2020, the interest coverage ratio deteriorated further to -3.12, which suggests that the company's earnings were insufficient to cover its interest payments. This indicates a heightened risk of default on its debt.
However, there was a significant improvement in 2021, with the interest coverage ratio increasing to 15.19. This improvement indicates that the company's earnings were more than sufficient to cover its interest expenses, reflecting a better financial position.
The trend continued positively in 2022, with the interest coverage ratio further improving to 28.85. This indicates that the company's ability to meet its interest obligations strengthened significantly, implying better financial health.
Unfortunately, the data for 2023 is missing, so we cannot assess the interest coverage ratio for that period. It would be essential to obtain this information to provide a complete analysis of United States Steel Corp.'s interest coverage in the most recent year.