Cleveland-Cliffs Inc (CLF)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 20,947,000 | 17,537,000 | 18,755,000 | 18,975,000 | 16,771,000 |
| Operating ROA | -3.61% | 3.86% | 10.34% | 21.14% | -0.85% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-756,000K ÷ $20,947,000K
= -3.61%
Based on the data provided, Cleveland-Cliffs Inc's operating return on assets (operating ROA) has shown significant fluctuations over the years.
In December 2020, the operating ROA was negative at -0.85%, indicating that the company incurred operating losses relative to its assets during that period.
However, the operating ROA improved substantially to 21.14% by December 2021, reflecting a strong operational performance and efficient asset utilization. This significant increase suggests that the company effectively generated operating profits in relation to its total assets.
Subsequently, the operating ROA decreased to 10.34% by December 2022, signaling a slight decline in operating efficiency compared to the previous year but still indicating a healthy return on assets.
By December 2023, Cleveland-Cliffs Inc experienced a further decline in operating ROA to 3.86%, indicating a decrease in operating profitability relative to its assets. This decrease could be attributed to various factors affecting the company's operational performance during that period.
The trend continued in December 2024, where the operating ROA turned negative again at -3.61%, indicating a deteriorating operating performance compared to the previous year. This negative operating ROA implies that the company's operating losses outweighed the value generated from its assets during that year.
Overall, Cleveland-Cliffs Inc's operating ROA has shown variability over the years, reflecting fluctuations in the company's operational efficiency and profitability in utilizing its assets effectively. It is essential for the company to analyze the factors contributing to these fluctuations and implement appropriate strategies to maintain and improve its operating ROA in the future.
Peer comparison
Dec 31, 2024