Cleveland-Cliffs Inc (CLF)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 21,450,000 | 21,111,000 | 16,474,000 | 5,511,000 | 1,414,300 |
| Payables | US$ in thousands | 2,099,000 | 2,186,000 | 2,073,000 | 1,575,000 | 193,000 |
| Payables turnover | 10.22 | 9.66 | 7.95 | 3.50 | 7.33 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $21,450,000K ÷ $2,099,000K
= 10.22
The payables turnover ratio measures how efficiently Cleveland-Cliffs Inc is managing its accounts payable. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.
The payables turnover for Cleveland-Cliffs Inc has shown a steady improvement over the last five years. In 2023, the payables turnover ratio increased to 9.82 from 9.36 in 2022, indicating that the company is managing its payables more efficiently than in the previous year.
Comparing back to 2020, the payables turnover ratio has significantly improved from 3.24 to 9.82 in 2023, showing a substantial enhancement in managing the accounts payable turnover.
Although there was a dip in the payables turnover ratio in 2021 to 7.67 from 7.32 in 2019, the overall trend suggests that Cleveland-Cliffs Inc has been more effective in paying off its suppliers promptly in recent years.
The consistent increase in the payables turnover ratio signifies that Cleveland-Cliffs Inc has been successful in managing its accounts payable more efficiently, which is a positive indicator of the company's financial health and management of working capital.
Peer comparison
Dec 31, 2023