Cleveland-Cliffs Inc (CLF)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,065,000 | 3,137,000 | 4,249,000 | 5,238,000 | 5,390,000 |
| Total stockholders’ equity | US$ in thousands | 6,664,000 | 7,887,000 | 7,791,000 | 5,490,000 | 2,018,000 |
| Debt-to-capital ratio | 0.51 | 0.28 | 0.35 | 0.49 | 0.73 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,065,000K ÷ ($7,065,000K + $6,664,000K)
= 0.51
The debt-to-capital ratio of Cleveland-Cliffs Inc has been showing a fluctuating trend over the years. As of December 31, 2020, the ratio stood at 0.73, indicating that 73% of the company's capital structure was funded by debt.
By December 31, 2021, there was a notable decrease in the ratio to 0.49, suggesting a reduction in the company's reliance on debt for financing its operations.
The trend continued to decline in the subsequent years, with the ratio dropping to 0.35 by December 31, 2022, and further to 0.28 by December 31, 2023. These lower ratios signal a healthier balance between debt and equity in the company's capital structure.
However, by December 31, 2024, the ratio increased to 0.51, indicating a slight uptick in the proportion of debt relative to the total capital. It would be crucial for stakeholders to monitor this trend to ensure that the company maintains a sustainable and optimal debt-to-capital ratio in the future.
Peer comparison
Dec 31, 2024