Cleveland-Cliffs Inc (CLF)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,636,000 | 7,422,000 | 7,653,000 | 5,298,000 | 898,000 |
| Total current liabilities | US$ in thousands | 3,508,000 | 3,549,000 | 3,561,000 | 2,929,000 | 409,000 |
| Current ratio | 1.89 | 2.09 | 2.15 | 1.81 | 2.20 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,636,000K ÷ $3,508,000K
= 1.89
The current ratio of Cleveland-Cliffs Inc has shown some fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 1.89, indicating that the company may have slightly less current assets relative to its current liabilities compared to the previous year. In 2022 and 2021, the current ratio was relatively higher at 2.09 and 2.15 respectively, suggesting a stronger ability to cover short-term obligations with current assets.
On the other hand, the current ratio was lower in 2020 at 1.81 and in 2019 at 2.19. This fluctuation in the current ratio over the years may indicate changes in the company's liquidity position and its ability to meet short-term financial obligations. A current ratio above 1 typically signifies that a company has more current assets than current liabilities, providing a buffer for liquidity challenges. However, investors and analysts should consider trends over time and compare the current ratio to industry benchmarks for a comprehensive assessment of Cleveland-Cliffs Inc's liquidity position.
Peer comparison
Dec 31, 2023