Cleveland-Cliffs Inc (CLF)
Debt-to-capital 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 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 |
| Debt-to-capital ratio | 0.28 | 0.30 | 0.34 | 0.38 | 0.35 | 0.39 | 0.41 | 0.44 | 0.49 | 0.57 | 0.62 | 0.71 | 0.73 | 0.84 | 0.85 | 0.83 | 0.86 | 0.85 | 0.88 | 0.89 |
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 for Cleveland-Cliffs Inc has shown a fluctuating trend over the past eight quarters. The ratio has ranged from 0.28 to 0.44 during this period.
In general, a lower debt-to-capital ratio indicates a lower financial risk as it suggests that the company relies less on debt to fund its operations. On the other hand, a higher ratio can signal increased financial leverage and potential difficulties in meeting debt obligations.
Looking at the trend for Cleveland-Cliffs Inc, the ratio seems to have decreased initially from Q1 2022 to Q4 2022 but then increased from Q1 2023 onwards. This indicates that the company may have taken on more debt relative to its capital structure in recent quarters.
It would be important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively while maintaining a healthy capital structure. Additionally, understanding the reasons behind the fluctuations in the ratio, such as changes in debt levels or capital structure adjustments, would provide further insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023