United States Steel Corporation (X)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 72,000 | 159,000 | 313,000 | 280,000 | 142,000 |
| Interest coverage | 15.54 | 21.50 | 14.88 | -3.67 | -2.18 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,119,000K ÷ $72,000K
= 15.54
The interest coverage ratio for United States Steel Corp. has shown significant fluctuations over the past five years. In 2019, the interest coverage was very low at 0.23, indicating that the company's operating income was insufficient to cover its interest expense, posing a potential risk to creditors.
In 2020, the interest coverage ratio improved but remained negative at -3.12, suggesting continued financial distress. The company's ability to meet its interest obligations improved notably in 2021, with an interest coverage of 15.19, indicating a substantial increase in operating income relative to interest expenses.
By 2022, the interest coverage ratio further strengthened to 28.85, signaling even greater financial stability and the company's improved capacity to cover its interest payments comfortably. However, the absence of the specific interest expense amount for the most recent year limits a direct comparison to previous years.
Overall, the trend in the interest coverage ratio of United States Steel Corp. demonstrates variability in the company's ability to service its debt obligations over the five-year period, with notable improvements in recent years indicating enhanced financial health and reduced risk of default.
Peer comparison
Dec 31, 2023