Cleveland-Cliffs Inc (CLF)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 21,439,000 | 21,428,000 | 21,589,000 | 21,563,000 | 21,097,000 | 20,043,000 | 18,962,000 | 17,455,000 | 16,464,000 | 14,229,700 | 11,522,700 | 8,904,100 | 5,506,500 | 3,723,000 | 2,528,700 | 1,718,500 | 1,414,200 | 1,501,300 | 1,580,800 | 1,530,400 |
| Inventory | US$ in thousands | 4,460,000 | 4,592,000 | 4,727,000 | 4,923,000 | 5,130,000 | 5,542,000 | 5,784,000 | 5,562,000 | 5,188,000 | 4,505,000 | 4,280,000 | 3,932,000 | 3,828,000 | 1,795,100 | 1,933,600 | 2,148,800 | 317,000 | 217,400 | 219,000 | 312,700 |
| Inventory turnover | 4.81 | 4.67 | 4.57 | 4.38 | 4.11 | 3.62 | 3.28 | 3.14 | 3.17 | 3.16 | 2.69 | 2.26 | 1.44 | 2.07 | 1.31 | 0.80 | 4.46 | 6.91 | 7.22 | 4.89 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $21,439,000K ÷ $4,460,000K
= 4.81
Inventory turnover is a key financial ratio that measures the efficiency of a company in managing its inventory levels. In the case of Cleveland-Cliffs Inc, the inventory turnover has been increasing steadily over the past eight quarters, indicating an improvement in the company's inventory management.
In Q4 2023, the inventory turnover ratio was 4.62, which means that the company sold and replaced its inventory approximately 4.62 times during the quarter. This is an improvement compared to the previous quarter, Q3 2023, where the ratio was 4.52. The increasing trend in inventory turnover suggests that Cleveland-Cliffs Inc is selling its inventory at a faster rate, which can lead to lower carrying costs and potential obsolescence risk.
Looking further back, the inventory turnover ratio has shown consistent growth since Q1 2022, where it was 3.03. This signifies that the company has been more effective in managing its inventory levels and aligning them with customer demand over time.
Overall, the increasing trend in Cleveland-Cliffs Inc's inventory turnover indicates that the company is efficiently managing its inventory and converting it into sales at a faster pace, which is a positive sign for the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023
Dec 31, 2023