Cleveland-Cliffs Inc (CLF)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 399,000 | 1,335,000 | 2,988,000 | -122,000 | 293,000 |
| Revenue | US$ in thousands | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 | 1,990,000 |
| Net profit margin | 1.81% | 5.81% | 14.62% | -2.28% | 14.72% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $399,000K ÷ $21,996,000K
= 1.81%
The net profit margin of Cleveland-Cliffs Inc has varied significantly over the past five years. In 2019 and 2021, the company demonstrated strong profitability with net profit margins of 14.71% and 14.62% respectively. However, in 2020, the company incurred a net loss, resulting in a negative net profit margin of -2.28%. The net profit margin improved in 2022 to 5.81% but decreased notably to 1.81% in 2023.
The declining trend in the net profit margin from 2021 to 2023 may indicate challenges in maintaining profitability, which could be attributed to factors such as changes in the cost structure, pricing pressures, or declining revenues relative to expenses. A negative net profit margin in 2020 suggests that the company faced financial difficulties that year.
It is important for Cleveland-Cliffs Inc to closely monitor and manage its expenses, revenues, and overall operational efficiency in order to enhance its profitability and ensure sustainable financial performance in the future. Further analysis of the company's financial and operational strategies would be necessary to understand the underlying reasons for the fluctuations in its net profit margin over the years.
Peer comparison
Dec 31, 2023