Cleveland-Cliffs Inc (CLF)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,537,000 | 18,755,000 | 18,975,000 | 16,771,000 | 3,504,000 |
| Total stockholders’ equity | US$ in thousands | 7,887,000 | 7,791,000 | 5,490,000 | 2,018,000 | 358,000 |
| Financial leverage ratio | 2.22 | 2.41 | 3.46 | 8.31 | 9.79 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,537,000K ÷ $7,887,000K
= 2.22
The financial leverage ratio of Cleveland-Cliffs Inc has decreased from 9.79 in 2019 to 2.22 in 2023. This trend indicates a significant improvement in the company's leverage position over the years, reflecting a lower reliance on debt to finance its operations and investment activities. The decreasing trend suggests that the company has been able to reduce its debt levels relative to its equity, which may enhance its financial stability and flexibility. Lower financial leverage ratios generally indicate a lower risk of financial distress and bankruptcy, as the company has a more conservative capital structure. The declining trend is a positive sign for investors and creditors, as it implies a healthier balance sheet and a stronger financial position for Cleveland-Cliffs Inc.
Peer comparison
Dec 31, 2023