Cleveland-Cliffs Inc (CLF)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 19,869,000 | 20,395,000 | 20,889,000 | 21,317,000 | 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 |
| Inventory | US$ in thousands | 5,094,000 | 4,236,000 | 4,199,000 | 4,449,000 | 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 |
| Inventory turnover | 3.90 | 4.81 | 4.97 | 4.79 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $19,869,000K ÷ $5,094,000K
= 3.90
Cleveland-Cliffs Inc's inventory turnover has shown a steady improvement over the past few years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio increased from 0.80 to 3.90. This improvement signifies that Cleveland-Cliffs Inc has been able to sell its inventory more frequently and turn over its stock at a faster rate.
The trend indicates that the company has been managing its inventory levels effectively, either by better forecasting customer demand, streamlining production processes, or reducing excess inventory. A higher turnover ratio suggests that the company is efficiently managing its working capital and improving its liquidity.
The consistent increase in inventory turnover ratio over the years is a positive sign for Cleveland-Cliffs Inc, as it reflects operational efficiency and effective inventory management practices within the company. This trend bodes well for the company's overall financial health and indicates improved profitability and cash flow.
Peer comparison
Dec 31, 2024
Dec 31, 2024