Stock Analysis on Net

United States Steel Corp. (NYSE:X)

This company has been moved to the archive! The financial data has not been updated since July 28, 2023.

Economic Value Added (EVA)

Microsoft Excel

EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.


Economic Profit

United States Steel Corp., economic profit calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net operating profit after taxes (NOPAT)1 3,060 4,449 (1,095) (121) 893
Cost of capital2 16.80% 15.79% 14.06% 10.45% 16.99%
Invested capital3 12,723 12,346 8,622 7,841 6,762
 
Economic profit4 923 2,499 (2,307) (940) (256)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2022 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 3,06016.80% × 12,723 = 923

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. United States Steel Corp. economic profit increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Net Operating Profit after Taxes (NOPAT)

United States Steel Corp., NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net earnings (loss) attributable to United States Steel Corporation 2,524 4,174 (1,165) (630) 1,115
Deferred income tax expense (benefit)1 501 (52) (130) 202 (329)
Increase (decrease) in allowance for doubtful accounts2 (6) 10 6 (1) 1
Increase (decrease) in accrued liabilities for restructuring and other cost reduction programs3 (58) 63 (35) 195 (21)
Increase (decrease) in equity equivalents4 437 21 (159) 396 (349)
Interest expense 159 313 280 142 168
Interest expense, operating lease liability5 10 13 17 18 16
Adjusted interest expense 169 326 297 160 184
Tax benefit of interest expense6 (36) (68) (62) (34) (39)
Adjusted interest expense, after taxes7 134 257 234 127 145
Interest income (44) (4) (7) (17) (23)
Investment income, before taxes (44) (4) (7) (17) (23)
Tax expense (benefit) of investment income8 9 1 1 4 5
Investment income, after taxes9 (35) (3) (6) (13) (18)
Net income (loss) attributable to noncontrolling interest
Net operating profit after taxes (NOPAT) 3,060 4,449 (1,095) (121) 893

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in allowance for doubtful accounts.

3 Addition of increase (decrease) in accrued liabilities for restructuring and other cost reduction programs.

4 Addition of increase (decrease) in equity equivalents to net earnings (loss) attributable to United States Steel Corporation.

5 2022 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 154 × 6.73% = 10

6 2022 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 169 × 21.00% = 36

7 Addition of after taxes interest expense to net earnings (loss) attributable to United States Steel Corporation.

8 2022 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 44 × 21.00% = 9

9 Elimination of after taxes investment income.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. United States Steel Corp. NOPAT increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Cash Operating Taxes

United States Steel Corp., cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Income tax provision (benefit) 735 170 (142) 178 (303)
Less: Deferred income tax expense (benefit) 501 (52) (130) 202 (329)
Add: Tax savings from interest expense 36 68 62 34 39
Less: Tax imposed on investment income 9 1 1 4 5
Cash operating taxes 260 290 49 6 60

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. United States Steel Corp. cash operating taxes increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Invested Capital

United States Steel Corp., invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Short-term debt and current maturities of long-term debt 63 28 192 14 65
Long-term debt, less unamortized discount and debt issuance costs, excluding current maturities 3,914 3,863 4,695 3,627 2,316
Operating lease liability1 154 194 222 237 243
Total reported debt & leases 4,131 4,085 5,109 3,878 2,624
Total United States Steel Corporation stockholders’ equity 10,218 9,010 3,786 4,092 4,202
Net deferred tax (assets) liabilities2 446 90 (11) (15) (431)
Allowance for doubtful accounts3 38 44 34 28 29
Accrued liabilities for restructuring and other cost reduction programs4 182 240 177 212 17
Equity equivalents5 666 374 200 225 (385)
Accumulated other comprehensive (income) loss, net of tax6 85 (331) 47 478 1,026
Noncontrolling interests 93 93 93 1 1
Adjusted total United States Steel Corporation stockholders’ equity 11,062 9,146 4,126 4,796 4,844
Construction in process7 (2,470) (885) (613) (833) (706)
Invested capital 12,723 12,346 8,622 7,841 6,762

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of allowance for doubtful accounts receivable.

4 Addition of accrued liabilities for restructuring and other cost reduction programs.

5 Addition of equity equivalents to total United States Steel Corporation stockholders’ equity.

6 Removal of accumulated other comprehensive income.

7 Subtraction of construction in process.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. United States Steel Corp. invested capital increased from 2020 to 2021 and from 2021 to 2022.

Cost of Capital

United States Steel Corp., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 6,809 6,809 ÷ 11,054 = 0.62 0.62 × 24.24% = 14.93%
Debt3 4,091 4,091 ÷ 11,054 = 0.37 0.37 × 6.12% × (1 – 21.00%) = 1.79%
Operating lease liability4 154 154 ÷ 11,054 = 0.01 0.01 × 6.73% × (1 – 21.00%) = 0.07%
Total: 11,054 1.00 16.80%

Based on: 10-K (reporting date: 2022-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 6,179 6,179 ÷ 10,941 = 0.56 0.56 × 24.24% = 13.69%
Debt3 4,568 4,568 ÷ 10,941 = 0.42 0.42 × 6.10% × (1 – 21.00%) = 2.01%
Operating lease liability4 194 194 ÷ 10,941 = 0.02 0.02 × 6.56% × (1 – 21.00%) = 0.09%
Total: 10,941 1.00 15.79%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 4,331 4,331 ÷ 9,957 = 0.43 0.43 × 24.24% = 10.54%
Debt3 5,404 5,404 ÷ 9,957 = 0.54 0.54 × 7.89% × (1 – 21.00%) = 3.38%
Operating lease liability4 222 222 ÷ 9,957 = 0.02 0.02 × 7.45% × (1 – 21.00%) = 0.13%
Total: 9,957 1.00 14.06%

Based on: 10-K (reporting date: 2020-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 1,495 1,495 ÷ 5,374 = 0.28 0.28 × 24.24% = 6.74%
Debt3 3,642 3,642 ÷ 5,374 = 0.68 0.68 × 6.42% × (1 – 21.00%) = 3.44%
Operating lease liability4 237 237 ÷ 5,374 = 0.04 0.04 × 7.76% × (1 – 21.00%) = 0.27%
Total: 5,374 1.00 10.45%

Based on: 10-K (reporting date: 2019-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 3,970 3,970 ÷ 6,423 = 0.62 0.62 × 24.24% = 14.98%
Debt3 2,210 2,210 ÷ 6,423 = 0.34 0.34 × 6.65% × (1 – 21.00%) = 1.81%
Operating lease liability4 243 243 ÷ 6,423 = 0.04 0.04 × 6.65% × (1 – 21.00%) = 0.20%
Total: 6,423 1.00 16.99%

Based on: 10-K (reporting date: 2018-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »


Economic Spread Ratio

United States Steel Corp., economic spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Economic profit1 923 2,499 (2,307) (940) (256)
Invested capital2 12,723 12,346 8,622 7,841 6,762
Performance Ratio
Economic spread ratio3 7.26% 20.24% -26.76% -11.99% -3.78%
Benchmarks
Economic Spread Ratio, Competitors4
Freeport-McMoRan Inc. -6.37% -2.89% -14.43% -14.92%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Economic profit. See details »

2 Invested capital. See details »

3 2022 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 923 ÷ 12,723 = 7.26%

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. United States Steel Corp. economic spread ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Economic Profit Margin

United States Steel Corp., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Economic profit1 923 2,499 (2,307) (940) (256)
Net sales 21,065 20,275 9,741 12,937 14,178
Performance Ratio
Economic profit margin2 4.38% 12.33% -23.69% -7.27% -1.80%
Benchmarks
Economic Profit Margin, Competitors3
Freeport-McMoRan Inc. -10.12% -4.40% -32.58% -29.18%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Economic profit. See details »

2 2022 Calculation
Economic profit margin = 100 × Economic profit ÷ Net sales
= 100 × 923 ÷ 21,065 = 4.38%

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. United States Steel Corp. economic profit margin improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.