Cleveland-Cliffs Inc (CLF)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 399,000 | 1,335,000 | 2,988,000 | -122,000 | 293,000 |
| Total stockholders’ equity | US$ in thousands | 7,887,000 | 7,791,000 | 5,490,000 | 2,018,000 | 358,000 |
| ROE | 5.06% | 17.14% | 54.43% | -6.05% | 81.84% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $399,000K ÷ $7,887,000K
= 5.06%
Cleveland-Cliffs Inc's return on equity (ROE) has experienced significant fluctuations over the past five years. In 2019, the ROE was high at 81.81%, indicating strong profitability relative to shareholders' equity in that year. This was followed by a substantial decline in 2020, where the ROE turned negative at -3.96%, suggesting a period of unprofitability or inefficiency in generating returns on equity.
However, the company managed to improve its ROE in the subsequent years, with a notable increase to 54.43% in 2021 and a further increase to 17.14% in 2022. These improvements reflect a positive trend in the company's ability to generate profits relative to shareholders' equity.
In 2023, there was a decrease in ROE to 5.06%, indicating a decline in profitability compared to the previous year. This could be attributed to various factors such as changes in the company's financial performance, capital structure, or operational efficiency.
Overall, the fluctuating trend in Cleveland-Cliffs Inc's ROE over the years suggests varying levels of profitability and efficiency in utilizing shareholders' equity. Further analysis would be needed to understand the factors driving these changes and to assess the company's overall financial health.
Peer comparison
Dec 31, 2023