Cleveland-Cliffs Inc (CLF)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -756,000 | 677,000 | 1,939,000 | 4,012,000 | -142,000 |
| Revenue | US$ in thousands | 19,185,000 | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 |
| Operating profit margin | -3.94% | 3.08% | 8.43% | 19.62% | -2.65% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-756,000K ÷ $19,185,000K
= -3.94%
Cleveland-Cliffs Inc's operating profit margin has displayed significant fluctuations over the past five years. In December 2020, the company reported a negative operating profit margin of -2.65%, indicating that its operating expenses outweighed its revenues during that period.
However, there was a notable turnaround in December 2021, as the operating profit margin surged to 19.62%, reflecting a substantial improvement in the company's operational efficiency and profitability. This sharp increase suggests that Cleveland-Cliffs implemented effective cost-cutting measures or experienced a boost in revenue generation relative to its operating costs.
In the subsequent years, the operating profit margin experienced fluctuations. By December 2022, it stood at 8.43%, signaling a decrease compared to the previous year. This may indicate increased operating expenses or a slowdown in revenue growth.
In December 2023, the operating profit margin further declined to 3.08%, indicating that Cleveland-Cliffs faced challenges in maintaining its profitability. This decrease could be due to various factors such as rising costs, competitive pressures, or fluctuations in demand.
Lastly, in December 2024, the company reported a negative operating profit margin of -3.94%, signifying a significant decline from the previous year. This negative margin suggests that Cleveland-Cliffs struggled to generate sufficient profits to cover its operating expenses, potentially facing financial difficulties or operational inefficiencies during that period.
Overall, Cleveland-Cliffs Inc's operating profit margin has been volatile, reflecting fluctuations in its ability to generate profits from its core business operations. Monitoring and analyzing these trends can provide insights into the company's financial health and performance over time.
Peer comparison
Dec 31, 2024