Cleveland-Cliffs Inc (CLF)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 21,996,000 | 21,928,000 | 21,976,000 | 22,329,000 | 22,989,000 | 23,291,000 | 23,642,000 | 22,350,000 | 20,444,000 | 17,354,000 | 12,996,000 | 9,044,000 | 5,354,000 | 3,632,100 | 2,541,700 | 2,191,900 | 1,989,900 | 2,152,100 | 2,338,300 | 2,309,400 |
| Total current assets | US$ in thousands | 6,636,000 | 6,941,000 | 7,165,000 | 7,444,000 | 7,422,000 | 8,325,000 | 8,768,000 | 8,559,000 | 7,653,000 | 7,146,000 | 6,574,000 | 5,861,000 | 5,298,000 | 2,628,800 | 2,642,300 | 3,065,600 | 898,000 | 1,064,600 | 1,119,400 | 1,126,000 |
| Total current liabilities | US$ in thousands | 3,508,000 | 3,294,000 | 3,408,000 | 3,460,000 | 3,549,000 | 3,580,000 | 3,987,000 | 3,751,000 | 3,561,000 | 3,279,000 | 2,986,000 | 2,933,000 | 2,929,000 | 1,214,100 | 1,038,000 | 1,370,800 | 409,000 | 458,500 | 437,400 | 394,000 |
| Working capital turnover | 7.03 | 6.01 | 5.85 | 5.60 | 5.94 | 4.91 | 4.94 | 4.65 | 5.00 | 4.49 | 3.62 | 3.09 | 2.26 | 2.57 | 1.58 | 1.29 | 4.07 | 3.55 | 3.43 | 3.15 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $21,996,000K ÷ ($6,636,000K – $3,508,000K)
= 7.03
Cleveland-Cliffs Inc's working capital turnover has shown a fluctuating trend over the past eight quarters. The metric measures the efficiency of the company in utilizing its working capital to generate revenue.
In Q4 2023, the working capital turnover ratio was 7.03, indicating that for every dollar of working capital, the company generated $7.03 in revenue during the quarter. This is an improvement compared to the previous quarter, where the ratio was 6.01.
The company's working capital turnover has generally been increasing since Q1 2022, with occasional dips in between. This suggests that Cleveland-Cliffs has been managing its working capital more effectively to support its revenue generation activities.
Overall, the increasing trend in the working capital turnover ratio reflects positively on the company's operational efficiency and indicates that Cleveland-Cliffs has been using its working capital more efficiently to drive revenue growth. These improvements can contribute to the company's financial health and potentially enhance its competitiveness in the industry.
Peer comparison
Dec 31, 2023