Cleveland-Cliffs Inc (CLF)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 54,000 | 198,000 | 26,000 | 48,000 | 112,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,576,000 | 1,840,000 | 1,960,000 | 2,157,000 | 1,193,000 |
| Total current liabilities | US$ in thousands | 3,322,000 | 3,508,000 | 3,549,000 | 3,561,000 | 2,929,000 |
| Quick ratio | 0.49 | 0.58 | 0.56 | 0.62 | 0.45 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($54,000K
+ $—K
+ $1,576,000K)
÷ $3,322,000K
= 0.49
The quick ratio of Cleveland-Cliffs Inc has shown some fluctuations over the past five years. As of December 31, 2020, the quick ratio was at a relatively low level of 0.45, indicating that the company may have had difficulty meeting its short-term obligations with its most liquid assets.
However, there was an improvement in the quick ratio by the end of 2021, reaching 0.62. This suggests that Cleveland-Cliffs Inc had slightly better liquidity compared to the previous year, which may indicate a stronger ability to cover its short-term liabilities without relying heavily on inventory.
In the subsequent years, the quick ratio fluctuated within a range of 0.56 to 0.58 by the end of 2023, indicating some stability in the company's ability to meet its short-term obligations. The slight increase in 2024 to 0.49 suggests a minor decrease in liquidity compared to the previous year but still shows an overall reasonable ability to cover short-term liabilities.
Overall, the quick ratio of Cleveland-Cliffs Inc has shown some variability over the years but generally indicates that the company has managed to maintain an acceptable level of liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2024