Cleveland-Cliffs Inc (CLF)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -989,000 | 547,000 | 1,758,000 | 3,761,000 | -233,000 |
| Revenue | US$ in thousands | 19,185,000 | 21,996,000 | 22,989,000 | 20,444,000 | 5,354,000 |
| Pretax margin | -5.16% | 2.49% | 7.65% | 18.40% | -4.35% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-989,000K ÷ $19,185,000K
= -5.16%
Cleveland-Cliffs Inc's pretax margin has shown significant fluctuations over the five-year period from 2020 to 2024. In 2020, the company reported a negative pretax margin of -4.35%, indicating that its expenses exceeded its revenue before accounting for taxes. However, by the end of 2021, the pretax margin improved substantially to 18.40%, suggesting increased profitability and better cost management.
Subsequently, in 2022 and 2023, the pretax margin decreased to 7.65% and 2.49%, respectively, indicating some challenges in maintaining the high profitability achieved in 2021. By the end of 2024, the pretax margin fell back into negative territory at -5.16%, signifying a return to a situation where expenses outpaced revenue before considering taxes.
Overall, the fluctuating pretax margin of Cleveland-Cliffs Inc reflects a mix of operational efficiencies and challenges faced by the company during the period under review. Further analysis of the underlying factors contributing to these fluctuations would be necessary to understand the company's financial performance in more detail.
Peer comparison
Dec 31, 2024