United States Steel Corporation (X)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 462,000 | 1,119,000 | 3,418,000 | 4,657,000 | -1,027,000 |
| Interest expense | US$ in thousands | 24,000 | 72,000 | 159,000 | 313,000 | 280,000 |
| Interest coverage | 19.25 | 15.54 | 21.50 | 14.88 | -3.67 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $462,000K ÷ $24,000K
= 19.25
United States Steel Corporation's interest coverage ratio has shown significant fluctuations over the years. In 2020, the interest coverage ratio was negative at -3.67, indicating that the company's earnings were insufficient to cover its interest expenses. However, the situation improved drastically in the following years. By the end of 2021, the interest coverage ratio had increased substantially to 14.88, signifying a healthier financial position with earnings more than sufficient to cover interest payments.
The positive trend continued into 2022 and 2023, with interest coverage ratios of 21.50 and 15.54 respectively, indicating strong financial performance and the ability to meet interest obligations comfortably. By the end of 2024, the interest coverage ratio further improved to 19.25, reaffirming the company's ability to service its debt obligations effectively.
Overall, the trend in United States Steel Corporation's interest coverage ratio has shown improvement over the years, suggesting a stronger financial position and better ability to meet its interest payments.
Peer comparison
Dec 31, 2024