Cleveland-Cliffs Inc (CLF)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 19,895,000 | 21,450,000 | 21,111,000 | 16,474,000 | 5,511,000 |
| Payables | US$ in thousands | 2,008,000 | 2,099,000 | 2,186,000 | 2,073,000 | 1,575,000 |
| Payables turnover | 9.91 | 10.22 | 9.66 | 7.95 | 3.50 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $19,895,000K ÷ $2,008,000K
= 9.91
The payables turnover for Cleveland-Cliffs Inc has shown a positive trend over the years, increasing from 3.50 in December 31, 2020 to 9.91 in December 31, 2024. This indicates that the company is paying its suppliers more frequently relative to the level of its accounts payable. A higher payables turnover ratio generally suggests that the company is managing its payables effectively and may have good bargaining power with its suppliers. It is important to note that a very high payables turnover could also indicate overly aggressive payment practices that might strain supplier relationships. Overall, the increasing trend in Cleveland-Cliffs Inc payables turnover suggests efficient management of accounts payable and a potential positive impact on working capital management.
Peer comparison
Dec 31, 2024