Cleveland-Cliffs Inc (CLF)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 9.91 | 10.22 | 9.66 | 7.95 | 3.50 | |
| Number of days of payables | days | 36.84 | 35.72 | 37.79 | 45.93 | 104.31 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.91
= 36.84
Based on the data provided, Cleveland-Cliffs Inc has shown a decreasing trend in the number of days of payables over the past five years.
As of December 31, 2020, the company had an average payment period of 104.31 days, indicating that, on average, it took the company approximately 104 days to pay its creditors after purchasing goods or services.
However, the number of days of payables decreased significantly to 45.93 days by the end of December 31, 2021, suggesting that the company was able to manage its payables more efficiently, perhaps by negotiating better payment terms or optimizing its cash flow.
This trend continued over the following years, with the number of days of payables further decreasing to 37.79 days by December 31, 2022, 35.72 days by December 31, 2023, and 36.84 days by December 31, 2024. These decreasing numbers indicate that the company has been able to improve its payables management, possibly by streamlining processes, enhancing supplier relationships, or achieving better inventory turnover.
Overall, the decreasing trend in the number of days of payables for Cleveland-Cliffs Inc reflects an improvement in the company's efficiency in managing its payments to suppliers and indicates a positive development in its working capital management.
Peer comparison
Dec 31, 2024