Cleveland-Cliffs Inc (CLF)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,895,000 | 21,450,000 | 21,111,000 | 16,474,000 | 5,511,000 |
| Inventory | US$ in thousands | 5,094,000 | 4,460,000 | 5,130,000 | 5,188,000 | 3,828,000 |
| Inventory turnover | 3.91 | 4.81 | 4.12 | 3.18 | 1.44 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $19,895,000K ÷ $5,094,000K
= 3.91
Based on the data provided, Cleveland-Cliffs Inc's inventory turnover has shown a notable improvement over the years. In 2020, the inventory turnover stood at 1.44, indicating that the company's inventory was turned over 1.44 times during the year.
From 2020 to 2024, there was a consistent upward trend in inventory turnover, reaching 3.91 in 2024. This indicates that the company's inventory was being managed more efficiently in recent years, with the inventory being turned over almost 4 times in 2024.
A higher inventory turnover ratio suggests that Cleveland-Cliffs Inc is selling its products more quickly, which can lead to increased liquidity, reduced carrying costs, and potentially higher profitability. This improvement in inventory turnover could be a result of better inventory management practices, effective demand forecasting, or streamlined production processes.
Overall, the increasing trend in Cleveland-Cliffs Inc's inventory turnover ratio reflects positively on the company's operational efficiency and management of its inventory levels. It indicates that the company is effectively managing its inventory to meet customer demand and optimize its working capital.
Peer comparison
Dec 31, 2024