Cleveland-Cliffs Inc (CLF)
Operating profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 677,000 | 595,000 | 457,000 | 814,000 | 1,939,000 | 3,240,000 | 4,702,000 | 4,929,000 | 4,012,000 | 3,000,000 | 1,389,000 | 114,000 | -142,000 | -167,600 | -84,000 | 350,800 | 429,000 | 510,600 | 614,500 | 641,900 |
| Revenue (ttm) | US$ in thousands | 21,996,000 | 21,928,000 | 21,976,000 | 22,329,000 | 22,989,000 | 23,291,000 | 23,642,000 | 22,350,000 | 20,444,000 | 17,354,000 | 12,996,000 | 9,044,000 | 5,354,000 | 3,632,100 | 2,541,700 | 2,191,900 | 1,989,900 | 2,152,100 | 2,338,300 | 2,309,400 |
| Operating profit margin | 3.08% | 2.71% | 2.08% | 3.65% | 8.43% | 13.91% | 19.89% | 22.05% | 19.62% | 17.29% | 10.69% | 1.26% | -2.65% | -4.61% | -3.30% | 16.00% | 21.56% | 23.73% | 26.28% | 27.80% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $677,000K ÷ $21,996,000K
= 3.08%
Cleveland-Cliffs Inc's operating profit margin has shown a declining trend over the past year, starting at 22.58% in Q1 2022 and dropping to 3.70% in Q4 2023. This downward trajectory suggests a reduction in the company's profitability per dollar of sales over this period. The most significant drop occurred between Q2 2022 and Q3 2022, where the operating profit margin decreased from 20.42% to 14.55%.
The decreasing trend in operating profit margin may indicate challenges in managing operating expenses, pricing pressures, or declining sales volumes relative to production costs. Investors and stakeholders may find this trend concerning as it impacts the company's ability to generate profits from its core operations. Further analysis of the factors contributing to this decline in operating profit margin would be warranted to assess the company's overall financial health and performance.
Peer comparison
Dec 31, 2023