Cleveland-Cliffs Inc (CLF)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 677,000 | 1,939,000 | 4,012,000 | -142,000 | 429,000 |
| Long-term debt | US$ in thousands | 3,137,000 | 4,249,000 | 5,238,000 | 5,390,000 | 2,114,000 |
| Total stockholders’ equity | US$ in thousands | 7,887,000 | 7,791,000 | 5,490,000 | 2,018,000 | 358,000 |
| Return on total capital | 6.14% | 16.10% | 37.40% | -1.92% | 17.35% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $677,000K ÷ ($3,137,000K + $7,887,000K)
= 6.14%
Cleveland-Cliffs Inc's return on total capital has fluctuated over the past five years. The return on total capital was 7.38% in 2023, significantly lower than the previous year's 17.05%. In 2021, the return on total capital was notably high at 38.33%, indicating strong efficiency in generating profits relative to the total capital employed. However, in 2020, the return on total capital dropped to a mere 0.09%, suggesting a significant downturn in the company's profitability efficiency. The year 2019 saw a return on total capital of 18.46%, indicating a decent performance in utilizing total capital to generate profits. Overall, the return on total capital for Cleveland-Cliffs Inc has shown variability, highlighting the importance of closely monitoring and analyzing the company's capital utilization and profitability trends.
Peer comparison
Dec 31, 2023