USX Corporation Ratio Analysis Appendix - 1 1990 Steel Group 1989 1988 1990 Marathon 1989 1988
Liquidity Ratios Current Ratio Current Assets (a) Current Liabilities (b) Current Ratio: (a/b) Quick Ratio Current Assets - Inventory (c) Current Liabilities (b) Quick Ratio: (c/b) NWC to Total Assets Current Assets (a) Current Liabilities (b) Total Assets (d) NWC to Total Assets: (a-b)/d Efficiency Ratios Sales to Assets Sales (e) Total Assets (d) Sales to Assets: (e/d) Days in Inventory Inventory (f) Cost of Good Sold (g) # of Days / Year (h) Days in Inventory: (f/(g/h)) Inventory Turnover Ratio Cost of Goods Sold (g) Inventory (f) Inventory Turnover Ratio: (g/f) Average Collection Period (days) Accounts Receivable (I) Sales (e) # of Days / Year (h) Average Collection Period (days) (I/(e/h)) Receivables Turnover Ratio Sales (e) Accounts Receivable (I) Receivables Turnover Ratio (e/I) Profitability Ratios Net Profit Margin Net Income (j) Sales (e) Net Profit Margin (j/e) Return on Assets Net Income (j) Total Assets (d) Return on Assets (j/d) Return on Sales Net Income (j) Preferred Dividends (k) Sales (e) Return on Sales ((j+k)/e)
$
1,541 $ 1,020 1.511
1,217 1,177 1.034
$
2,357 $ 2,527 0.933
2,381 2,148 1.108
845 1,020 0.828
669 1,177 0.568
1,021 2,527 0.404
1,178 2,148 0.548
1,541 1,020 5,582 0.093
1,217 1,177 5,499 0.007
2,357 2,527 11,931 (0.014)
2,381 2,148 12,622 0.018
6,073 5,582 1.088
6,509 5,499 1.184
14,616 11,931 1.225
12,264 12,622 0.972
696 5,216 365 48.704
548 5,378 365 37.192
1,336 10,485 365 46.508
1,203 8,507 365 51.616
5,216 696 7.494
5,378 548 9.814
10,485 1,336 7.848
8,507 1,203 7.071
775 6,073 365 46.579
373 6,509 365 20.916
721 14,616 365 18.005
588 12,264 365 17.500
6,073 775 7.836
6,509 373 17.450
14,616 721 20.272
12,264 588 20.857
306 6,073 5.039%
523 6,509 8.035%
672 6,996 9.605%
494 14,616 3.380%
384 12,264 3.131%
14 9,949 0.141%
306 5,582 5.482%
523 5,499 9.511%
494 11,931 4.140%
384 12,622 3.042%
310 (4) 6,073 5.039%
540 (17) 6,509 8.035%
703 (31) 6,996 9.605%
508 (14) 14,616 3.380%
425 (41) 12,264 3.131%
53 (39) 9,949 0.141%
Exhibit 6 USX: Balance Sheets, 1989-1990 ($ millions) USX-Marathon Group 31-Dec 1990 1989 Assets Current Assets Cash and cash equivalents Receivables Receivable from U.S.Steel Group Inventories Other Current assets Total Current assets Long-term receivables &other investments Property, plant, and equipment, less accum. deprec. of $6,614 and $6,995 Prepaid pensions Other noncurrent assets Total assets Liabilities Current liabilities Notes payable Accounts payable Payroll and benefits payable Accrued taxes Payable to U.S. Steel group Accrued interest Long term debt due within one year Total current liabilities Long-term debt Deferred income taxes Deferred credits and oher liabilities Total liabilities Stockholders' equity Preferred stock Common equity Other equity adjustments Total stockholders' equity Total liabilities & stockholders' equity
193 721 0 1336 107 2357 385 8836 202 151 11931
490 557 31 1203 100 2381 527 9428 161 125 12622
106 1601 72 293 240 82 133 2527 3926 1480 373 8306
12 1353 70 539 0 87 87 2148 4348 1894 550 8940
83 3550 -8 3625 11931
295 3391 -4 3682 12622
Exhibit 6 USX: Balance Sheets, 1989-1990 ($ millions) (cont'd) USX-Consolidated 31-Dec
1990 Assets Current Assets Cash and cash equivalents Receivables Inventories Other Current assets Total Current assets
1989
263 1249 2032 109 3653
786 914 1751 100 3551
Long-term receivables &other investments Property, plant, and equipment
1158 11584
1414 11995
Prepaid pensions Other noncurrent assets Total assets
656 217 17268
351 189 17500
Liabilities Current liabilities Notes payable Accounts payable Payroll and benefits payable Accrued taxes Accrued interest Long term debt due within one year Total current liabilities Long term debt Deferred income taxes Deferred credits and oher liabilities Total liabilities Stockholders' equity Preferred stock Common stock issued ($1 par) Treasury common stock at cost Additional parid-in capital Net income reinvested in business Other equity adjustments Total stockholders' equity Total liabilities & stockholders' equity
138 2196 243 415 113 197 3302 5330 1503 1264 11399
16 1983 275 752 118 134 3278 5741 1320 1424 11763
108 269 -462 3520 2451 -17 5869 17268
382 269 -422 3512 2008 -12 5737 17500
Notes:
For the consolidated company, the average number of common shares outstanding in 1990, 1989, and 1988 was 2 Source: Proxy Statement, April 10, 1991.
Ehxibit 6 USX: Income Statements, 1988-1990 ($ millions) (cont'd)
Marathon Group 1990 1989 Sales Operating costs Cost of sales Inventory market valuation credits Selling, general & admin expense Depreciation, depletion & amort Taxes other than income taxes Exploration expenses Restructuring credits Total operating costs Operating income Other income (Loss) Interest and other financial income Interest and other financial costs Total income before income taxes Less provision for U.S. and foreign income taxes Net income Dividends on preferred stock Net income applicable to common stock 14616 12264
1988 9949
10485 -140 383 1026 1552 229 0 13535 1081 -21 34 -315 779 271 508 -14 494
8507 -145 378 1029 1400 165 0 11334 930 114 129 -602 571 146 425 -41 384
6699 -23 352 1006 1291 191 0 9516 433 62 92 -499 88 35 53 -39 14
Notes:
The large "other income" figures for 1989 and 1988 were due primarily to gians on disposals of assets. Selling, general, and admin. expenses were negative for U.S. Steel because of large offsetting credits fr Corporate general and administative expenses were $ 92 million, $93 million, and $76 million in 1990, 1 Source: Proxy Statement, April 10, 1991; and internal company source.
USX-Steel Group 31-Dec 1990 1989 Assets Current Assets Cash and cash equivalents Receivables Receivable from the Marathon Group Inventories Total Current assets Long-term receivables &other investments Property, plant, and equipment, less accum. deprec. of $5,595 and $5,353 Deferred income tax benefits Prepaid pensions Other noncurrent assets Total assets Liabilities Current liabilities Notes payable Accounts payable Payroll and benefits payable Accrued taxes Payable to the Marathon group Accrued interest Long-term debt due within one year Total current liabilities Long term debt Deferred income taxes Deferred credits and oher liabilities Total liabilities Stockholders' equity Preferred stock Common equity Other equity adjustments Total stockholders' equity Total liabilities & stockholders' equity
70 535 240 696 1541 773 2748 0 454 66 5582
296 373 0 548 1217 887 2567 574 190 64 5499
32 600 171 122 0 31 64 1020 1404 23 891 3338
4 646 205 213 31 31 47 1177 1393 0 874 3444
25 2228 -9 2244 5582
87 1976 -8 2055 5499
1990, 1989, and 1988 was 255 million, 257 milliom, and 262 million, respectively.
U.S.Steel group 1990 1989 6073 6509
1988 6996
USX Consolidated 1990 1989 20659 18717
1988 16877
5216 -97 278 201
5378 -23 307 207
5510 -45 363 236 -50 6014 982 147 107 -332 904 201 703 -31 672
5598 475 58 102 -198 437 127 310 -4 306
5869 640 292 93 -238 787 247 540 -17 523
15671 -140 286 1304 1753 229 0 19103 1556 37 136 -513 1216 398 818 -18 800
13827 -145 355 1336 1607 167 0 17147 1570 406 222 -840 1358 393 965 -58 907
12141 -23 307 1369 1527 191 -50 15462 1415 209 199 -831 992 236 756 -70 686
ians on disposals of assets. se of large offsetting credits from earnings on pension plan assets. on, and $76 million in 1990, 1989, and 1988, respectively.
Exhibit 5 USX Financial Data on Comparable Energy and Steel Companies ($ millions except per share data) Armco 1,990 1,989 Revenues Restructuring Charges Operating Profit EBITDA Net income from continuing operations Net income including discontinued operations and extraordinary items Long-term debt (at year end) Preferred Stock (at year end) Net Income from continuing operations Net Income including discontinued operations and extraordinary items Dividends on Common Stock Common Stock High Low At end of year Book value per share # of shares o/s at year-end (millions) 1,735 77 117 (63) (98) 367 93 (0.71) 2,422 43 116 173 202 157 423 93 2.28 Bethlehem Steel 1,990 1,989 4,899 550 (443) (137) (487) (463) 590 308 (6.45) 5,251 105 267 592 219 246 565 320 2.93
(1.10) 0.40 11.250 3.875 5.125 9.54 88.50
1.78 0.30 13.500 9.500 10.750 10.98 88.40
(6.45) 0.40 21.125 10.625 14.875 15.56 75.90
2.93 0.20 28.500 15.375 18.500 22.37 75.20
Inland Steel 1,990 1,989 3,870 2 121 (48) (48) 692 339 (1.41) 4,147 231 362 113 113 578 339 3.15
(1.41) 1.40 36.375 20.875 24.750 41.27 30.90
3.15 1.40 48.500 31.375 33.750 43.00 34.70
Energy Companies Amarada Hass 1990 1989 Revenues Re-Structuring Charges Operating Profit EBITDA Net income from continuing operations Net income including discontinued operations extraordinary items Long term debt at year end Preferred stock at year end Per Share Net Income from continuing operations Net income including discontinued operations and extraordinary items Dividends on common stock Common Stock High Low At Year end Book value per share # Shares Outstanding (Millions) 7081 0 706 1450 483 483 2532 5679 0 618 1164 476 476 2348 Atlantic Richfield Phillips Petroleum 1990 1989 1990 19896 0 2568 4290 1685 2008 5997 16815 0 2209 3957 1949 1949 5313 13975 0 1435 2243 541 779 3839
5.96 5.96 0.6
5.87 5.87 0.6
10.2 12.15 5
11.26 11.26 4.5
2.18 3.13 1.03
56 42.875 46.375 38.34 81
51.875 31 48.75 31.69 80.8
142.25 105.5 123.65 44.83 158.9
114.375 80.375 111.375 39.64 164.2
31.125 22.5 26.125 10.51 258.7
Phillips Petroleum 1989 12492 0 1073 2179 219 219 3939
Unocal 1990 1989 11808 0 625 1649 401 401 4047 11353 0 685 1558 358 260 3887
0.9 0.9 0.94
1.71 1.71 0.7
1.53 1.11 0.6
30.125 19.125 25.25 8.74 243.9
34.5 24.625 26.25 10.87 234.5
31.25 18.875 29.75 9.83 234
Exhibit 1 USX: Industry Trends: Financial Ratios and Common Stock Prices for the Steel and Integrated Domestic Oil Industri Steel Return on Total Assets Return on sales Debt to Total Assets Dividend Yield High Low Common Stock Prices High Low
-4.90% -4.00% 16% 4.10% 2.80% $ 52.61 $ 35.47
5.40% 4.60% 16% 2.30% 1.80% $ 60.57 $ 47.71
7.40% 5.80% 18% 1.20% 90.00% $ 54.73 $ 40.84
3.30% 3.10% 22% 0.30% 0.20% $ 51.78 $ 28.62
-6.50% -7.50% 30% 4.20% 2.70% $ 38.08 $ 24.13
-2.90% -2.70% 29% 2.40% 2.00% $ 41.38 $ 33.38
-1.30% -1.20% 32% 3.10% 2.00% $ 52.07 $ 33.56
Integrated Domestic Oil Return on Total Assets Return on sales Debt to Total Assets Dividend Yeild High Low Common Stock Price High Low
3.30% 3.40% 29% 4.80% 4.10% $ 762.79 $ 648.46
4.50% 5.00% 29% 5.30% 3.80% $ 729.18 $ 528.88
3.60% 4.50% 30% 5.50% 4.50% $ 568.66 $ 466.50
2.90% 3.60% 30% 5.40% 3.80% $ 638.45 $ 446.61
1.50% 2.00% 30% 6.60% 5.30% $ 448.98 $ 362.41
3.40% 3.30% 27% 6.90% 5.40% $ 469.13 $ 369.30
6.20% 6.20% 19% 6.00% 4.90% $ 415.53 $ 339.76
Definition of Measurements Return on Total Assets means primary earnings from continuing operations, less preferred dividends, divided by total assets. Return on Sales means primary earnings from continuing operations, less preferred dividends divided by total sales. Debt to Total Assets means long-term debt (excluding current portion) divided by total assets. Dividend Yield means commons stock dividend divided by stock price. Common Stock Price refers to Standard & Poor's index for each industry.
Note: There are about eight companies included in the S&P Steel index; USX was included through 1986. There are about ele companies included in the S&P Integrated Domestic Oil Index; USX was included starting in 1987. Source: Standard & Poor's Analyst's Handbook (annual editions); some calculations are by casewriter.
d Integrated Domestic Oil Industries, 1980-1989
-7.50% -7.80% 32% 3.60% 2.50% $ 49.70 $ 34.25
-8.20% -8.10% 31% 8.70% 5.40% $ 46.29 $ 28.41
5.70% 4.70% 19% 7.20% 5.20% $ 60.94 $ 44.33
3.20% 2.70% 21% 7.90% 5.80% $ 51.40 $ 37.91
6.20% 5.80% 18% 6.20% 4.70% $ 368.06 $ 278.14
6.90% 6.10% 21% 7.80% 5.30% $ 325.83 $ 221.06
8.90% 7.10% 19% 5.10% 3.60% $ 422.73 $ 295.89
9.30% 7.00% 18% 4.60% 2.30% $ 503.96 $ 258.52
vidends, divided by total assets. s divided by total sales.
hrough 1986. There are about eleven
Exhibit 2 USX: Trends, 1980-1990 ($millions, except per share price) 1990 Total Sales Total Assets Long-Term Debt Depreciation depletion & amort. Earning (losses) from continuing ops. Common Stock Dividend Common Stock Price High Low 20,659 17,268 5,330 1,304 800 1989 18,717 17,500 5,741 1,336 907 1988 16,877 19,474 5,963 1,369 686 1987 14,836 19,577 6,618 1,332 141 1986 14,938 21,823 5,697 1,559 (1,925) 1985 19,283 18,446 5,348 1,294 288
1.40 37.50 29.63
1.40 39.50 28.88
1.25 34.38 26.00
1.20 39.38 21.00
1.20 28.75 14.50
1.10 33.00 24.38
Note: 1986 and 1983 earnings include pretax restructuring charges of 1,457 million and 1,149 million, respectively. Restructuring charges (credits) in other y material. Statistics are presented as reported in each year and do not reflect subsequent restatements. Source: Company Annual Reports
1984 19,104 18,989 6,261 1,241 374
1983 17,523 19,314 7,164 1,169 (1,245)
1982 18,907 19,432 6,843 1,072 (383)
1981 13,941 13,316 2,340 571 1,077
1980 12,492 11,748 2,401 524 505
1.00 33.25 22.00
1.00 31.00 19.63
1.75 30.13 16.00
2.00 35.25 23.38
1.60 25.88 16.25
y. Restructuring charges (credits) in other years are not
Exhibit 3 USX: Segment Sales Information ($millions) Unaffiliated customers Energy 1990 14,586 1989 12,209 1988 9,883 1987 10,015 1986 8,895 1985 11,992 1984 12,209 Steel 1990 5,465 1989 5,724 1988 5,804 1987 3,663 1986 3,580 1985 5,609 1984 5,507 Diversified Businesses 1990 608 1989 784 1988 1,190 1987 1,235 1986 2,463 1985 3,178 1984 3,376 Corporate eliminations 1990 1989 1988 1987 1986 1985 1984 Total consolidated 1990 20,659 1989 18,717 1988 16,877 1987 14,913 1986 14,938 1985 20,779 1984 21,092 Between Segments 30 55 66 63 68 82 105 8 6 3 10 128 320 409 106 125 399 301 348 653 670 (144) (186) (468) (374) (544) (1,055) (1,184)
Total 14,616 12,264 9,949 10,078 8,963 12,074 12,314 5,473 5,730 5,807 3,673 3,708 5,929 5,916 714 909 1,589 1,536 2,811 3,831 4,046 (144) (186) (468) (374) (544) (1,055) (1,184) 20,659 18,717 16,877 14,913 14,938 20,779 21,092
Note: Intersegment sales and transfers are, for the most part, accounted for at commercial prices. Source: Company Annual Reports