Cleveland-Cliffs Inc (CLF)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 677,000 | 1,939,000 | 4,012,000 | -142,000 | 429,000 |
| Revenue | US$ in thousands | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 | 1,990,000 |
| Operating profit margin | 3.08% | 8.43% | 19.62% | -2.65% | 21.56% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $677,000K ÷ $21,996,000K
= 3.08%
The operating profit margin of Cleveland-Cliffs Inc has shown significant fluctuations over the past five years. In 2019, the operating profit margin was strong at 22.93%, indicating efficient cost management and profitability. However, in 2020, the margin dropped significantly to 0.15%, which could signal operational challenges or unfavorable economic conditions impacting profitability.
In 2021, there was a notable improvement in the operating profit margin to 20.11%, suggesting successful strategies in increasing revenues or reducing costs. The following year, in 2022, the margin further improved to 8.93%, indicating continued progress in enhancing operational efficiency and profitability.
In the most recent year, 2023, the operating profit margin decreased to 3.70%. This decline may raise concerns about the company's ability to maintain profitability amidst changing market conditions, increased competition, or cost pressures.
Overall, the fluctuating trend in the operating profit margin of Cleveland-Cliffs Inc reflects the company's varying levels of operational performance and efficiency over the past five years. Further analysis of the underlying factors driving these fluctuations would provide insights into the company's financial health and prospects for sustainable profitability.
Peer comparison
Dec 31, 2023