Cleveland-Cliffs Inc (CLF)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 21,996,000 | 21,928,000 | 21,976,000 | 22,329,000 | 22,989,000 | 23,291,000 | 23,642,000 | 22,350,000 | 20,444,000 | 17,354,000 | 12,996,000 | 9,044,000 | 5,354,000 | 3,632,100 | 2,541,700 | 2,191,900 | 1,989,900 | 2,152,100 | 2,338,300 | 2,309,400 |
| Property, plant and equipment | US$ in thousands | 8,895,000 | 8,837,000 | 8,878,000 | 8,950,000 | 9,070,000 | 9,030,000 | 9,047,000 | 9,012,000 | 9,186,000 | 8,974,000 | 8,982,000 | 9,014,000 | 8,743,000 | 4,550,700 | 4,547,900 | 4,549,800 | 1,929,000 | 1,769,900 | 1,597,300 | 1,410,300 |
| Fixed asset turnover | 2.47 | 2.48 | 2.48 | 2.49 | 2.53 | 2.58 | 2.61 | 2.48 | 2.23 | 1.93 | 1.45 | 1.00 | 0.61 | 0.80 | 0.56 | 0.48 | 1.03 | 1.22 | 1.46 | 1.64 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $21,996,000K ÷ $8,895,000K
= 2.47
Cleveland-Cliffs Inc's fixed asset turnover ratio has shown a relatively stable trend over the past eight quarters, ranging between 2.47 and 2.61. The ratio indicates that, on average, the company generates $2.47 to $2.61 in revenue for every dollar invested in fixed assets.
A higher fixed asset turnover ratio generally suggests that the company is effectively utilizing its fixed assets to generate sales. The decreasing trend in the fixed asset turnover ratio from Q3 2022 to Q1 2023 may indicate a slight decrease in efficiency in generating revenues from fixed assets during that period.
Overall, Cleveland-Cliffs Inc's fixed asset turnover ratio remains relatively healthy, indicating reasonable efficiency in utilizing its fixed assets to support its business operations and generate revenues. It would be beneficial for the company to continue monitoring this ratio to ensure optimal asset utilization in the future.
Peer comparison
Dec 31, 2023