Cleveland-Cliffs Inc (CLF)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -754,000 | 399,000 | 1,335,000 | 2,988,000 | -122,000 |
| Total assets | US$ in thousands | 20,947,000 | 17,537,000 | 18,755,000 | 18,975,000 | 16,771,000 |
| ROA | -3.60% | 2.28% | 7.12% | 15.75% | -0.73% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-754,000K ÷ $20,947,000K
= -3.60%
Based on the provided data, Cleveland-Cliffs Inc's return on assets (ROA) has fluctuated over the past five years. In December 2020, the company's ROA was -0.73%, indicating a negative return on its total assets. However, there was a significant improvement in December 2021, with the ROA increasing to 15.75%, suggesting a substantial return generated from the company's assets.
Subsequently, in December 2022 and December 2023, Cleveland-Cliffs Inc's ROA declined to 7.12% and 2.28%, respectively, reflecting a decrease in the efficiency of asset utilization to generate profits. By the end of December 2024, the company experienced a further decrease in ROA to -3.60%, signifying a negative return on assets and potential challenges in generating profits relative to its asset base.
Overall, the trend in Cleveland-Cliffs Inc's ROA indicates fluctuations in the company's ability to generate profits from its assets over the five-year period, with notable improvements in 2021 but subsequent declines in the following years. The negative ROA values highlight potential issues in asset management and profitability that may require further investigation and strategic adjustments.
Peer comparison
Dec 31, 2024