Cleveland-Cliffs Inc (CLF)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -756,000 | -391,000 | 193,000 | 670,000 | 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 |
| Total assets | US$ in thousands | 20,947,000 | 16,796,000 | 16,928,000 | 17,236,000 | 17,537,000 | 18,059,000 | 18,303,000 | 18,652,000 | 18,755,000 | 19,688,000 | 20,039,000 | 19,768,000 | 18,975,000 | 18,066,000 | 17,746,000 | 17,215,000 | 16,771,000 | 8,480,900 | 8,490,700 | 8,912,300 |
| Operating ROA | -3.61% | -2.33% | 1.14% | 3.89% | 3.86% | 3.29% | 2.50% | 4.36% | 10.34% | 16.46% | 23.46% | 24.93% | 21.14% | 16.61% | 7.83% | 0.66% | -0.85% | -1.98% | -0.99% | 3.94% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-756,000K ÷ $20,947,000K
= -3.61%
Operating return on assets (Operating ROA) is a key financial ratio that indicates the efficiency of Cleveland-Cliffs Inc in generating profits from its assets utilized in its operations. Analyzing the trend of Operating ROA over time provides valuable insights into the company's operational performance.
From March 31, 2020, to December 31, 2024, Cleveland-Cliffs Inc's Operating ROA exhibited fluctuations. The ratio started at a modest 3.94% in March 2020, but subsequently experienced periods of negativity, indicating challenges in generating operational profits relative to the total assets employed.
However, there was a noticeable turnaround in the company's performance starting from March 31, 2021, with a positive uptrend in Operating ROA. The ratio increased consistently through June 30, 2022, reaching a peak of 23.46% and demonstrated a strong improvement in operational efficiency.
Despite this positive trend, there was a decline in Operating ROA in the second half of 2022 and going into 2023. The ratio hovered around the mid-single digits, indicating a slight decrease in the firm's ability to generate profits from its operational assets.
In the last quarter of 2023 and the first half of 2024, there was some stabilization in the Operating ROA, albeit at lower levels than the peak in mid-2022. However, in the latter half of 2024, there was a notable decrease in Operating ROA, with the ratio turning negative in the last two quarters, indicating challenges in operating profitability.
Overall, the analysis suggests that Cleveland-Cliffs Inc experienced a mix of positive and challenging periods in terms of operational efficiency over the reviewed period, with a notable improvement in mid-2021 to mid-2022 followed by some decline towards the end of the period. Monitoring Operating ROA trends is crucial for stakeholders to assess the company's ability to generate profits relative to its operational assets effectively.
Peer comparison
Dec 31, 2024