Cleveland-Cliffs Inc (CLF)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,185,000 | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 |
| Total current assets | US$ in thousands | 6,907,000 | 6,636,000 | 7,422,000 | 7,653,000 | 5,298,000 |
| Total current liabilities | US$ in thousands | 3,322,000 | 3,508,000 | 3,549,000 | 3,561,000 | 2,929,000 |
| Working capital turnover | 5.35 | 7.03 | 5.94 | 5.00 | 2.26 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,185,000K ÷ ($6,907,000K – $3,322,000K)
= 5.35
The working capital turnover of Cleveland-Cliffs Inc has shown a positive trend over the years, increasing from 2.26 in December 31, 2020, to 5.00 in December 31, 2021, and further rising to 5.94 in December 31, 2022. This indicates that the company has been able to convert its working capital into revenue more efficiently. In December 31, 2023, the working capital turnover increased to 7.03, reflecting a significant improvement in the management of working capital. However, in December 31, 2024, the working capital turnover slightly decreased to 5.35, which could be due to various factors affecting the company's operations or financial performance. Overall, a higher working capital turnover ratio signifies that Cleveland-Cliffs Inc is effectively utilizing its working capital to generate sales, which is a positive sign of operational efficiency.
Peer comparison
Dec 31, 2024