Cleveland-Cliffs Inc (CLF)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 2.53% | 2.28% | 1.76% | 3.43% | 8.23% | 13.95% | 19.80% | 21.90% | 19.47% | 18.00% | 11.34% | 1.55% | -2.85% | -2.51% | 0.50% | 21.60% | 28.93% | 30.24% | 32.40% | 33.73% |
| 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% |
| Pretax margin | 2.49% | 2.18% | 1.57% | 2.91% | 7.65% | 13.14% | 19.06% | 21.25% | 18.40% | 15.59% | 8.19% | -0.88% | -4.35% | -6.21% | -3.86% | 10.67% | 15.63% | 17.32% | 30.59% | 30.13% |
| Net profit margin | 1.81% | 1.55% | 1.04% | 2.14% | 5.81% | 10.48% | 15.07% | 16.77% | 14.62% | 12.44% | 6.73% | -0.32% | -2.28% | -3.38% | -0.85% | 12.00% | 14.72% | 38.99% | 50.72% | 51.54% |
Cleveland-Cliffs Inc's profitability ratios have shown a declining trend over the past few quarters. The gross profit margin has decreased steadily from 24.59% in Q1 2022 to 6.32% in Q4 2023, indicating a significant decrease in the profitability of the company's core operations.
Similarly, the operating profit margin, which reflects the company's ability to generate profits from its normal business activities, has also shown a downward trend from 22.58% in Q1 2022 to 3.70% in Q4 2023. This suggests that the company's operating efficiency and cost management may have deteriorated.
The pretax margin, which indicates the company's ability to generate profits before accounting for taxes, has followed a similar pattern of decline. It decreased from 21.42% in Q1 2022 to 2.71% in Q4 2023, reflecting a decrease in overall profitability.
The net profit margin, which measures the company's bottom-line profitability after all expenses have been deducted, has also seen a sharp decline from 16.77% in Q1 2022 to 1.81% in Q4 2023. This indicates that Cleveland-Cliffs Inc's net earnings as a percentage of revenue have decreased significantly over the period under review.
Overall, the declining trend in profitability ratios for Cleveland-Cliffs Inc raises concerns about the company's overall financial performance and its ability to generate sustained profits in the future. Further analysis of the drivers behind these declines, such as changes in costs, pricing strategies, or market conditions, would be essential to understand the company's profitability challenges and potential areas for improvement.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.28% | 1.88% | 1.25% | 2.56% | 7.12% | 12.40% | 17.79% | 18.96% | 15.75% | 11.95% | 4.93% | -0.17% | -0.73% | -1.45% | -0.26% | 2.95% | 8.36% | 24.03% | 34.95% | 36.00% |
| Return on total capital | 6.14% | 5.18% | 3.88% | 6.72% | 16.10% | 28.22% | 41.26% | 43.36% | 37.40% | 32.10% | 16.15% | 1.40% | -1.92% | -3.27% | -1.60% | 6.67% | 17.35% | 20.68% | 25.71% | 27.33% |
| Return on equity (ROE) | 5.06% | 4.24% | 2.92% | 6.32% | 17.14% | 34.85% | 52.96% | 59.13% | 54.43% | 54.03% | 27.06% | -1.21% | -6.05% | -15.12% | -2.74% | 29.13% | 81.84% | 233.15% | 415.27% | 454.83% |
Cleveland-Cliffs Inc's profitability ratios have exhibited a declining trend over the past eight quarters.
1. Operating return on assets (Operating ROA) has shown a decrease from 25.53% in Q1 2022 to 4.64% in Q4 2023. This indicates that the company's operating income generated from its assets has decreased significantly.
2. Return on assets (ROA) has also declined from 18.96% in Q1 2022 to 2.28% in Q4 2023. This shows a diminishing ability of the company to generate profits from its total assets.
3. Return on total capital has decreased from 44.39% in Q1 2022 to 7.38% in Q4 2023, suggesting a reduction in the company's ability to generate returns on its total invested capital.
4. Return on equity (ROE) has experienced a downward trend, declining from 59.13% in Q1 2022 to 5.06% in Q4 2023. This indicates a decreasing profitability for the company's shareholders.
Overall, the declining trend in these profitability ratios raises concerns about the company's operational efficiency and ability to generate sustainable returns for its stakeholders. Further analysis and investigation into the underlying reasons for these trends are necessary to determine the appropriate strategic actions to address these challenges.