Cleveland-Cliffs Inc (CLF)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -756,000 | -391,000 | 193,000 | 670,000 | 677,000 | 595,000 | 457,000 | 814,000 | 1,939,000 | 3,240,000 | 4,702,000 | 4,929,000 | 4,012,000 | 3,000,000 | 1,389,000 | 114,000 | -142,000 | -167,600 | -84,000 | 350,800 |
| Long-term debt | US$ in thousands | 7,065,000 | 3,774,000 | 3,507,000 | 3,664,000 | 3,137,000 | 3,458,000 | 3,963,000 | 4,559,000 | 4,249,000 | 4,475,000 | 4,668,000 | 5,028,000 | 5,238,000 | 5,350,000 | 5,368,000 | 5,734,000 | 5,390,000 | 4,309,800 | 4,451,600 | 4,357,100 |
| Total stockholders’ equity | US$ in thousands | 6,664,000 | 6,854,000 | 7,110,000 | 7,201,000 | 7,887,000 | 8,020,000 | 7,802,000 | 7,546,000 | 7,791,000 | 7,008,000 | 6,729,000 | 6,339,000 | 5,490,000 | 3,996,000 | 3,233,000 | 2,389,000 | 2,018,000 | 810,600 | 792,900 | 903,200 |
| Return on total capital | -5.51% | -3.68% | 1.82% | 6.17% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-756,000K ÷ ($7,065,000K + $6,664,000K)
= -5.51%
Cleveland-Cliffs Inc's return on total capital has shown fluctuating performance over the analyzed periods.
- The company experienced a significant improvement in its return on total capital, starting from negative values in mid-2020 and reaching a peak of 43.36% by March 31, 2022.
- Subsequently, the return on total capital exhibited a slight decrease but remained relatively strong at around 40% until June 30, 2022.
- However, there was a notable decline in return on total capital in the following quarters, dropping to 1.82% by June 30, 2024, and further decreasing to negative values by the end of 2024.
These changes in return on total capital indicate fluctuations in the company's ability to generate profits from its total capital investments, signaling potential shifts in operational efficiency and financial performance during the period under review. Further analysis of the underlying factors contributing to these fluctuations would be necessary to provide a more detailed insight into the company's financial health and operational strategies.
Peer comparison
Dec 31, 2024