Cleveland-Cliffs Inc (CLF)
Quick ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 54,000 | 39,000 | 110,000 | 30,000 | 198,000 | 31,000 | 34,000 | 59,000 | 26,000 | 56,000 | 47,000 | 35,000 | 48,000 | 42,000 | 73,000 | 110,000 | 112,000 | 56,000 | 73,700 | 186,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,576,000 | 1,583,000 | 1,773,000 | 1,868,000 | 1,840,000 | 2,122,000 | 2,290,000 | 2,216,000 | 1,960,000 | 2,301,000 | 2,571,000 | 2,667,000 | 2,157,000 | 2,348,000 | 2,062,000 | 1,659,000 | 1,193,000 | 662,700 | 544,800 | 622,500 |
| 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 |
| Quick ratio | 0.49 | 0.50 | 0.57 | 0.56 | 0.58 | 0.65 | 0.68 | 0.66 | 0.56 | 0.66 | 0.66 | 0.72 | 0.62 | 0.73 | 0.72 | 0.60 | 0.45 | 0.59 | 0.60 | 0.59 |
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, a measure of its short-term liquidity, has shown some fluctuations over the past years. The ratio has been consistently below 1, indicating that the company may have difficulties meeting its short-term obligations using its most liquid assets.
From March 31, 2020, to December 31, 2020, the quick ratio declined from 0.59 to 0.45, reflecting a decrease in the company's ability to cover its current liabilities with its quick assets. Subsequently, the ratio improved to 0.73 by September 30, 2021, showing a positive trend in liquidity management.
While the quick ratio fluctuated between 0.56 and 0.72 from March 31, 2022, to June 30, 2023, it stabilized around 0.65 from September 30, 2023, to December 31, 2024. The slight decrease in the ratio towards the end of the period may indicate a potential liquidity concern that requires monitoring.
Overall, managing the quick ratio within an appropriate range is essential for Cleveland-Cliffs Inc to ensure its ability to meet short-term obligations efficiently. A continuous evaluation of liquidity management strategies will be crucial for the company's financial health and stability in the future.
Peer comparison
Dec 31, 2024