Cleveland-Cliffs Inc (CLF)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 3,504,000 | 3,491,200 | 3,393,200 | 3,306,300 |
| Operating ROA | 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% | 12.24% | 14.63% | 18.11% | 19.41% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $677,000K ÷ $17,537,000K
= 3.86%
Cleveland-Cliffs Inc's operating return on assets (operating ROA) has exhibited fluctuating trends over the past eight quarters. The operating ROA for Q4 2023 was 4.64%, showing a slight increase from the previous quarter's 3.49%. However, compared to earlier periods, the current operating ROA remains lower, indicating potential challenges in generating operating income relative to its total assets.
The company experienced a notable decline in operating ROA from Q1 2022 to Q2 2022, with a significant drop from 25.53% to 24.09%. This downward trend continued in subsequent quarters, further decreasing to 17.21% in Q3 2022 and eventually reaching 10.95% in Q4 2022. The latest operating ROA of 4.64% in Q4 2023 suggests a gradual but incomplete recovery from this decline.
It is crucial for Cleveland-Cliffs Inc to assess and address the factors contributing to the variations in its operating ROA to enhance profitability and operational efficiency. Monitoring and improving this ratio over time can help the company maintain sustainable growth and financial performance.
Peer comparison
Dec 31, 2023