Cleveland-Cliffs Inc (CLF)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 198,000 | 26,000 | 48,000 | 112,000 | 353,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,508,000 | 3,549,000 | 3,561,000 | 2,929,000 | 409,000 |
| Cash ratio | 0.06 | 0.01 | 0.01 | 0.04 | 0.86 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($198,000K
+ $—K)
÷ $3,508,000K
= 0.06
The cash ratio of Cleveland-Cliffs Inc has been relatively stable at around 0.09 to 0.10 over the span of the past four years, indicating that the company holds approximately 9% to 10% of its current liabilities in cash or cash equivalents. However, there was a significant drop in the cash ratio from 1.05 in 2019 to 0.09 in 2020, which could be a cause for concern as it suggests a considerable decrease in the company's ability to cover its short-term obligations with its cash holdings. It is important for investors and stakeholders to closely monitor the company's liquidity position and management of cash resources to ensure its financial stability and ability to meet its financial obligations in the future.
Peer comparison
Dec 31, 2023