United States Steel Corporation (X)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	-310,000	379,000	830,000	1,007,000
Interest expense (ttm)	US$ in thousands	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	142,000	131,000	140,000	152,000
Interest coverage		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	-2.18	2.89	5.93	6.62

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,119,000K ÷ $72,000K
= 15.54

United States Steel Corp.'s interest coverage ratio has shown an improving trend over the past eight quarters. In Q1 2022, the interest coverage ratio stood at 20.65, indicating that the company's operating income was 20.65 times greater than its interest expenses for that quarter. Subsequently, there was a steady increase in the interest coverage ratio in each consecutive quarter, reaching 108.14 in Q2 2023.

This indicates that the company's ability to meet its interest obligations has significantly improved over the quarters in review. The latest interest coverage ratio of 108.14 suggests that the company's operating income is now more than sufficient to cover its interest expenses over 100 times. This trend reflects positively on the company's financial health and indicates a stronger ability to service its debt obligations in the future.