Cleveland-Cliffs Inc (CLF)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 429,000 | 510,600 | 614,500 | 641,900 |
| Long-term debt | US$ in thousands | 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 | 2,114,000 | 2,109,100 | 2,104,500 | 2,087,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 358,000 | 359,900 | 285,600 | 261,700 |
| Return on total capital | 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% | 17.35% | 20.68% | 25.71% | 27.33% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $677,000K ÷ ($3,137,000K + $7,887,000K)
= 6.14%
The return on total capital for Cleveland-Cliffs Inc has been fluctuating over the past year, with the percentages varying widely from quarter to quarter.
In Q4 2023, the return on total capital was 7.38%, which represents a slight increase from the previous quarter's 5.50%. However, this figure is significantly lower compared to the higher returns observed in the same quarter of the previous year, specifically the 17.05% in Q4 2022.
Throughout the past year, there has been a notable downward trend in the return on total capital, with Q2 and Q1 of 2022 showing exceptionally high returns of 42.35% and 44.39% respectively. These high returns may indicate strong profitability and efficiency in capital utilization during those periods.
Overall, it is essential for Cleveland-Cliffs Inc to closely monitor and assess the factors affecting their return on total capital, as it is a key metric in evaluating the company's overall financial performance and efficiency in generating returns from its invested capital.
Peer comparison
Dec 31, 2023