Cleveland-Cliffs Inc (CLF)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,664,000 | 7,887,000 | 7,791,000 | 5,490,000 | 2,018,000 |
| ROE | -11.31% | 5.06% | 17.14% | 54.43% | -6.05% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-754,000K ÷ $6,664,000K
= -11.31%
In analyzing Cleveland-Cliffs Inc's return on equity (ROE) over the period from December 31, 2020, to December 31, 2024, there are notable fluctuations.
1. December 31, 2020: Cleveland-Cliffs Inc had a negative ROE of -6.05%. This indicates that the company's net income was insufficient to generate a positive return relative to shareholders' equity.
2. December 31, 2021: The ROE significantly improved to 54.43%, reflecting a substantial increase in profitability and efficiency in generating returns for shareholders.
3. December 31, 2022: Although the ROE decreased from the previous year, it remained at a respectable 17.14%, suggesting that Cleveland-Cliffs Inc continued to deliver a favorable return on equity.
4. December 31, 2023: The ROE declined further to 5.06%, indicating a decrease in profitability and efficiency in utilizing shareholders' equity to generate returns.
5. December 31, 2024: Cleveland-Cliffs Inc experienced a significant decrease in ROE to -11.31%, returning to negative territory. This suggests that the company encountered challenges in profitability and efficiency, which impacted its ability to deliver positive returns to shareholders.
Overall, Cleveland-Cliffs Inc's ROE exhibited volatility and fluctuations over the period under review. It is essential for the company to focus on improving its profitability and operational efficiency to sustain positive returns for shareholders in the future.
Peer comparison
Dec 31, 2024