Cleveland-Cliffs Inc (CLF)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,185,000 | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 |
| Property, plant and equipment | US$ in thousands | 9,942,000 | 8,895,000 | 9,070,000 | 9,186,000 | 8,743,000 |
| Fixed asset turnover | 1.93 | 2.47 | 2.53 | 2.23 | 0.61 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,185,000K ÷ $9,942,000K
= 1.93
Cleveland-Cliffs Inc's fixed asset turnover has exhibited a notable improvement over the past few years. Starting at 0.61 in December 31, 2020, the ratio has steadily increased to 2.23 in December 31, 2021, and continued to rise to 2.53 in December 31, 2022, indicating a more efficient utilization of fixed assets to generate sales revenue.
Although there was a slight decline to 2.47 in December 31, 2023, and further down to 1.93 in December 31, 2024, the company still maintained a relatively strong fixed asset turnover ratio compared to the base year. This suggests that Cleveland-Cliffs Inc has been effective in leveraging its fixed assets to drive sales, despite the fluctuations observed in the later years.
Overall, the upward trend in fixed asset turnover from 2020 to 2022 reflects a positive operational performance and efficient management of assets, which may have contributed to the company's financial sustainability and profitability during this period.
Peer comparison
Dec 31, 2024