Cleveland-Cliffs Inc (CLF)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 9.89 | 10.28 | 10.04 | 10.39 | 10.21 | 10.32 | 10.20 | 9.92 | 9.65 | 8.49 | 7.31 | 7.69 | 7.94 | 7.78 | 6.92 | 5.11 | 3.50 | 5.24 | 5.01 | 2.08 | |
| Number of days of payables | days | 36.89 | 35.49 | 36.34 | 35.12 | 35.74 | 35.36 | 35.77 | 36.78 | 37.82 | 43.00 | 49.93 | 47.49 | 45.96 | 46.89 | 52.74 | 71.45 | 104.40 | 69.68 | 72.86 | 175.29 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.89
= 36.89
The number of days of payables for Cleveland-Cliffs Inc shows fluctuations over the analyzed period, ranging from a high of 175.29 days on March 31, 2020, to a low of 35.36 days on September 30, 2023. This ratio measures how long, on average, the company takes to pay its creditors. A decreasing trend in the number of days of payables indicates that the company is managing its payables more efficiently, possibly negotiating better terms with suppliers or improving its working capital management.
On June 30, 2021, Cleveland-Cliffs Inc significantly reduced its days of payables to 52.74 days, likely improving its liquidity position or optimizing its cash flow. The company continued this trend, reaching a low of 35.12 days on March 31, 2024, indicating a consistent effort to efficiently manage its payables.
A lower number of days of payables suggests that the company is paying its suppliers more quickly, which can be beneficial for maintaining good relationships with vendors. However, excessively low days of payables can also indicate stringent payment terms that may strain the company's cash flow if not managed properly.
Overall, the fluctuation in Cleveland-Cliffs Inc's number of days of payables reflects its dynamic approach to managing its working capital and supplier relationships over the analyzed period.
Peer comparison
Dec 31, 2024