Cleveland-Cliffs Inc (CLF)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,137,000 | 4,249,000 | 5,238,000 | 5,390,000 | 2,114,000 |
| Total assets | US$ in thousands | 17,537,000 | 18,755,000 | 18,975,000 | 16,771,000 | 3,504,000 |
| Debt-to-assets ratio | 0.18 | 0.23 | 0.28 | 0.32 | 0.60 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,137,000K ÷ $17,537,000K
= 0.18
The debt-to-assets ratio of Cleveland-Cliffs Inc has exhibited a decreasing trend over the past five years. It decreased from 0.60 in 2019 to 0.18 in 2023. A declining trend in this ratio indicates that the company has been progressively reducing its reliance on debt to finance its assets. Lower debt-to-assets ratio signifies a stronger financial position and less financial risk as the proportion of debt relative to total assets decreases. In 2023, the company's debt was only 18% of its total assets, indicating that a significant portion of its assets is funded through equity. This trend suggests that Cleveland-Cliffs Inc has been effectively managing its debt levels and improving its financial stability over the years.
Peer comparison
Dec 31, 2023