Cleveland-Cliffs Inc (CLF)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -710,000 | 546,000 | 1,878,000 | 3,970,000 | -157,000 |
| Revenue | US$ in thousands | 19,185,000 | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 |
| Gross profit margin | -3.70% | 2.48% | 8.17% | 19.42% | -2.93% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-710,000K ÷ $19,185,000K
= -3.70%
Based on the data provided, Cleveland-Cliffs Inc's gross profit margin has displayed fluctuations over the past five years.
As of December 31, 2020, the company experienced a negative gross profit margin of -2.93%, indicating a situation where the cost of goods sold exceeded the revenue generated from sales. Subsequently, there was a significant improvement in performance by December 31, 2021, with the gross profit margin reaching 19.42%. This positive trend suggests that the company was able to effectively control its production costs and increase its revenue relative to the cost of goods sold.
However, by December 31, 2022, the gross profit margin decreased to 8.17%, signaling a potential challenge in maintaining the profitability of the company's core operations. The margin further declined to 2.48% by December 31, 2023, indicating a continued struggle in managing production costs and achieving profitability.
The most recent data point, as of December 31, 2024, shows a negative gross profit margin of -3.70%, highlighting a concerning scenario where the company's cost of goods sold outweighed the revenue generated from sales, resulting in an overall loss at the gross profit level.
In summary, the gross profit margin trend for Cleveland-Cliffs Inc over the past five years indicates fluctuations and challenges in effectively managing production costs and generating profits from its core business operations. The company may need to focus on improving cost efficiency and revenue generation strategies to enhance its overall financial performance in the future.
Peer comparison
Dec 31, 2024