Cleveland-Cliffs Inc (CLF)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 | 1,990,000 |
| Property, plant and equipment | US$ in thousands | 8,895,000 | 9,070,000 | 9,186,000 | 8,743,000 | 1,929,000 |
| Fixed asset turnover | 2.47 | 2.53 | 2.23 | 0.61 | 1.03 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $21,996,000K ÷ $8,895,000K
= 2.47
The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. It indicates how efficiently the company is utilizing its long-term assets to generate sales.
Cleveland-Cliffs Inc's fixed asset turnover has fluctuated over the past five years. In 2023, the fixed asset turnover ratio was 2.47, slightly lower than the previous year's ratio of 2.53. This suggests that the company generated $2.47 in sales for every $1 invested in fixed assets in 2023.
The upward trend from 2020 to 2022 reflects improving efficiency in utilizing fixed assets to generate sales. However, there was a significant increase in 2023, followed by a slight decline, indicating some variability in the company's asset utilization efficiency.
Comparing the latest ratio to historical data, Cleveland-Cliffs Inc's fixed asset turnover in 2023 is higher than in 2020 and 2019, indicating improved efficiency in generating sales revenue from fixed assets compared to those years.
Overall, Cleveland-Cliffs Inc has shown varying levels of efficiency in utilizing its fixed assets to generate sales over the past five years, with fluctuations in the fixed asset turnover ratio that may require further analysis to understand the underlying factors driving these changes.
Peer comparison
Dec 31, 2023