Cleveland-Cliffs Inc (CLF)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,947,000 | 16,796,000 | 16,928,000 | 17,236,000 | 17,537,000 | 18,059,000 | 18,303,000 | 18,652,000 | 18,755,000 | 19,688,000 | 20,039,000 | 19,768,000 | 18,975,000 | 18,066,000 | 17,746,000 | 17,215,000 | 16,771,000 | 8,480,900 | 8,490,700 | 8,912,300 |
| 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 |
| Financial leverage ratio | 3.14 | 2.45 | 2.38 | 2.39 | 2.22 | 2.25 | 2.35 | 2.47 | 2.41 | 2.81 | 2.98 | 3.12 | 3.46 | 4.52 | 5.49 | 7.21 | 8.31 | 10.46 | 10.71 | 9.87 |
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 shown a decreasing trend over the past few years, indicating a reduction in the company's reliance on debt to finance its operations and investments. As of December 31, 2024, the financial leverage ratio stands at 3.14, reflecting the company's ability to generate higher levels of earnings relative to its debt obligations.
The gradual decline in the financial leverage ratio from 10.71 in June 30, 2020, to 3.14 in December 31, 2024, suggests that Cleveland-Cliffs Inc has been effectively managing its debt levels and improving its financial stability. A lower financial leverage ratio typically indicates a lower risk of financial distress and higher solvency for the company.
Overall, the decreasing trend in the financial leverage ratio of Cleveland-Cliffs Inc is a positive indicator of the company's financial health and sustainable growth prospects. Investors and stakeholders may view this trend favorably as it implies a stronger balance sheet and less exposure to financial risks associated with high levels of debt.
Peer comparison
Dec 31, 2024