United States Steel Corporation (X)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	24,000	18,000	29,000	47,000	72,000	95,000	117,000	136,000	159,000	189,000	226,000	271,000	313,000	333,000	342,000	322,000	280,000	243,000	191,000	158,000
Interest coverage		19.25	22.78	22.52	22.40	15.54	16.13	15.87	18.51	21.50	22.42	26.08	20.85	14.88	10.86	3.23	-1.50	-3.67	-6.03	-7.27	-4.85

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $462,000K ÷ $24,000K
= 19.25

United States Steel Corporation's interest coverage ratio has shown significant fluctuations over the past few years. The interest coverage ratio measures the company's ability to meet its interest payments on debt obligations. A higher ratio indicates that the company is more capable of servicing its debt.

From March 31, 2020, to June 30, 2021, the company experienced negative interest coverage ratios, indicating that its earnings were insufficient to cover its interest expenses during that period. This situation can raise concerns about the company's financial stability and its ability to meet debt obligations without additional financing or restructuring.

However, starting from September 30, 2021, the interest coverage ratio improved significantly, reaching levels above 10. This positive trend suggests that the company's earnings have strengthened, allowing it to comfortably meet its interest payments.

The interest coverage ratio continued to improve gradually until June 30, 2022, when it peaked at 26.08. This indicates that the company's financial position had strengthened significantly, providing a comfortable cushion to cover its interest expenses.

From September 30, 2022, to December 31, 2024, the interest coverage ratio remained relatively stable, ranging between 15 and 23. While these levels are considered healthy, investors and creditors may monitor any potential changes in the company's profitability and cash flow that could impact its ability to service its debt in the future.

Overall, the recent trend in United States Steel Corporation's interest coverage ratio shows a positive improvement in its ability to handle interest payments, signaling a stronger financial position compared to the previous challenging periods.