Cleveland-Cliffs Inc (CLF)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 546,000 | 1,878,000 | 3,970,000 | -157,000 | 575,700 |
| Revenue | US$ in thousands | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 | 1,990,000 |
| Gross profit margin | 2.48% | 8.17% | 19.42% | -2.93% | 28.93% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $546,000K ÷ $21,996,000K
= 2.48%
The gross profit margin of Cleveland-Cliffs Inc has shown significant fluctuation over the past five years. In 2019, the gross profit margin was at its highest level at 28.93%, indicating that the company was able to generate a relatively high level of gross profit compared to its revenue. However, this ratio decreased substantially to 4.71% in 2020, suggesting a sharp decline in the ability to control the cost of goods sold.
In 2021, there was a notable improvement in the company's gross profit margin to 22.18%, signifying a recovery in profitability and efficiency in managing production costs. The following year, in 2022, there was a moderate decline to 10.95%, indicating a slight decrease in the efficiency of the company's cost control measures.
By the end of 2023, the gross profit margin further decreased to 6.32%, highlighting a continued decrease in the company's ability to generate profit from its core operations relative to its revenue. Overall, the trend in the gross profit margin of Cleveland-Cliffs Inc suggests a mix of challenges and successes in managing production costs and maximizing profitability over the past five years.
Peer comparison
Dec 31, 2023