Cleveland-Cliffs Inc (CLF)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,185,000 | 19,972,000 | 21,008,000 | 21,900,000 | 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 |
| Total current assets | US$ in thousands | 6,907,000 | 6,027,000 | 6,192,000 | 6,469,000 | 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 |
| Total current liabilities | US$ in thousands | 3,322,000 | 3,255,000 | 3,318,000 | 3,396,000 | 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 |
| Working capital turnover | 5.35 | 7.20 | 7.31 | 7.13 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,185,000K ÷ ($6,907,000K – $3,322,000K)
= 5.35
The working capital turnover ratio for Cleveland-Cliffs Inc has displayed a generally increasing trend over the analyzed period from March 31, 2020, to December 31, 2024. The ratio started at 1.29 on March 31, 2020, indicating that the company was generating $1.29 in net sales revenue for every dollar of working capital invested.
There was a steady improvement in efficiency as the ratio increased to 7.03 by December 31, 2023, suggesting that the company was able to generate $7.03 in net sales for every dollar of working capital. This demonstrates a strong ability to manage its working capital effectively and utilize its current assets efficiently to drive sales.
However, there was a slight decline in the working capital turnover ratio to 5.35 by December 31, 2024. This decrease could be due to various factors such as changes in the company's operating cycle, inventory management, or collection of receivables.
Overall, the trend in the working capital turnover ratio indicates that Cleveland-Cliffs Inc has been increasingly efficient in utilizing its working capital to generate sales revenue, which is a positive sign for the company's financial performance and management of its current assets.
Peer comparison
Dec 31, 2024