Cleveland-Cliffs Inc (CLF)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,947,000 | 17,537,000 | 18,755,000 | 18,975,000 | 16,771,000 |
| Total stockholders’ equity | US$ in thousands | 6,664,000 | 7,887,000 | 7,791,000 | 5,490,000 | 2,018,000 |
| Financial leverage ratio | 3.14 | 2.22 | 2.41 | 3.46 | 8.31 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,947,000K ÷ $6,664,000K
= 3.14
The financial leverage ratio of Cleveland-Cliffs Inc has significantly improved over the years, decreasing from 8.31 in 2020 to 3.46 in 2021, and further declining to 2.41 in 2022. This indicates a reduction in the company's reliance on debt financing in relation to equity. By the end of 2023, the ratio dropped even lower to 2.22 before experiencing a slight uptick to 3.14 by the end of 2024. Overall, the trend suggests that Cleveland-Cliffs Inc has successfully managed its debt levels and strengthened its financial structure, which may enhance its financial stability and flexibility in the long term.
Peer comparison
Dec 31, 2024