Cleveland-Cliffs Inc (CLF)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 17,537,000 | 18,059,000 | 18,303,000 | 18,652,000 | 18,755,000 | 19,688,000 | 20,039,000 | 19,768,000 | 18,975,000 | 18,066,000 | 17,746,000 | 17,215,000 | 16,771,000 | 8,480,900 | 8,490,700 | 8,912,300 | 3,504,000 | 3,491,200 | 3,393,200 | 3,306,300 |
| Debt-to-assets ratio | 0.18 | 0.19 | 0.22 | 0.24 | 0.23 | 0.23 | 0.23 | 0.25 | 0.28 | 0.30 | 0.30 | 0.33 | 0.32 | 0.51 | 0.52 | 0.49 | 0.60 | 0.60 | 0.62 | 0.63 |
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 slight decline from 0.25 in Q1 2022 to 0.18 in Q4 2023. This indicates that the company's reliance on debt in financing its assets has decreased over this period. Despite some fluctuation, the ratio has generally remained within a relatively stable range between 0.18 and 0.25.
A lower debt-to-assets ratio suggests that Cleveland-Cliffs Inc has a lower level of financial leverage and is less dependent on debt to finance its operations and investments. This can be viewed positively as lower leverage reduces the company's financial risk and potential vulnerability to economic downturns or rising interest rates.
Overall, the trend in the debt-to-assets ratio of Cleveland-Cliffs Inc reflects a prudent approach to managing its capital structure and indicates a relatively conservative financial position in terms of debt utilization.
Peer comparison
Dec 31, 2023