Cleveland-Cliffs Inc (CLF)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 7,887,000 | 7,791,000 | 5,490,000 | 2,018,000 | 358,000 |
| Debt-to-capital ratio | 0.28 | 0.35 | 0.49 | 0.73 | 0.86 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,137,000K ÷ ($3,137,000K + $7,887,000K)
= 0.28
The debt-to-capital ratio of Cleveland-Cliffs Inc has been on a decreasing trend over the past five years, indicating a positive shift towards a lower reliance on debt financing. The ratio decreased from 0.86 in 2019 to 0.28 in 2023. This signifies that the company has been gradually decreasing its debt levels relative to its total capital structure. A lower debt-to-capital ratio suggests that Cleveland-Cliffs is becoming less leveraged and more financially stable. This trend may indicate improved financial health and reduced risk for the company, as it may be relying more on equity financing as compared to debt financing.
Peer comparison
Dec 31, 2023