United States Steel Corporation (X)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.85 | 1.85 | 1.89 | 1.90 | 1.90 | 1.91 | 1.95 | 1.98 | 1.98 | 2.19 | 2.75 | 3.17 | 3.19 | 3.40 | 3.47 | 3.32 | 2.84 | 2.60 | 2.62 | 2.63 |
The solvency ratios of United States Steel Corp. provide insights into the company's ability to meet its financial obligations and manage its debt levels effectively.
The debt-to-assets ratio remained relatively stable around 0.20-0.21 levels throughout the past eight quarters, indicating that the company finances approximately 20-21% of its assets through debt. This suggests a conservative approach to leverage, as a lower ratio implies less reliance on debt for asset financing.
The debt-to-capital ratio also remained constant at around 0.28, showing that roughly 28% of the company's capital structure is funded by debt. This consistent ratio may indicate a consistent capital structure maintained by the company over the period.
The debt-to-equity ratio fluctuated between 0.38 and 0.41 during the quarters under review, implying that the company's debt comprises around 38-41% of its total equity. This indicates that the company relies moderately on debt to finance its operations, with variations in the ratio possibly reflecting changes in debt or equity levels.
The financial leverage ratio, which measures the company's total assets relative to equity, showed a decreasing trend over the quarters from 1.98 to 1.85. A lower financial leverage ratio suggests a lower level of financial risk and a stronger equity position to support the company's assets.
Overall, the solvency ratios suggest that United States Steel Corp. maintains a relatively stable and conservative debt structure, with consistent levels of leverage and a gradual improvement in financial leverage over the quarters analyzed.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the provided data, the interest coverage ratio for United States Steel Corp. has shown a positive trend over the past eight quarters. The interest coverage ratio measures the company's ability to pay interest on its outstanding debt using its operating income.
In Q1 2022, the interest coverage ratio was 20.65, indicating that the company's operating income was 20.65 times greater than its interest expense. This ratio improved consistently over the subsequent quarters, reaching 37.62 in Q1 2023 and further increasing to 108.14 in Q2 2023.
The significant improvement in the interest coverage ratio suggests that United States Steel Corp. has been more efficient in generating operating income to cover its interest expenses. This trend indicates a favorable financial position for the company in terms of its debt repayment capacity and financial stability.
See also:
United States Steel Corporation Solvency Ratios (Quarterly Data)