Cleveland-Cliffs Inc (CLF)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,065,000 | 3,774,000 | 3,507,000 | 3,664,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 6,664,000 | 6,854,000 | 7,110,000 | 7,201,000 | 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 |
| Debt-to-capital ratio | 0.51 | 0.36 | 0.33 | 0.34 | 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 |
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
Cleveland-Cliffs Inc's debt-to-capital ratio has shown a decreasing trend over the past few years, indicating improved financial stability and a lower reliance on debt for financing its operations. The ratio decreased from 0.83 as of March 31, 2020, to 0.28 as of December 31, 2023, before slightly increasing to 0.51 by December 31, 2024.
This downward trend suggests that Cleveland-Cliffs Inc has been effectively managing its debt levels in relation to its total capital, which includes both debt and equity. A lower debt-to-capital ratio typically signifies a stronger financial position and lower financial risk for the company.
It is important to monitor the debt-to-capital ratio over time to assess Cleveland-Cliffs Inc's ability to meet its financial obligations, manage its debt levels responsibly, and maintain a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024