Cleveland-Cliffs Inc (CLF)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 3,504,000 | 3,491,200 | 3,393,200 | 3,306,300 |
| 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 |
| Financial leverage ratio | 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 | 9.79 | 9.70 | 11.88 | 12.63 |
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 shown variations over the past eight quarters. The ratio has fluctuated within the range of 2.22 to 3.12 during this period, indicating changes in the company's level of debt relative to its equity.
In Q4 2023, the financial leverage ratio stood at 2.22, a slight decrease from the previous quarter's ratio of 2.25. This suggests that the company's reliance on debt to finance its operations decreased slightly in Q4 2023. However, the ratio remains above 2, indicating that Cleveland-Cliffs Inc continues to have a higher level of debt compared to its equity.
Looking back over the past year, the financial leverage ratio peaked at 3.12 in Q1 2022, signaling a significant increase in the company's debt relative to its equity during that period. Subsequently, the ratio has shown a declining trend, reaching 2.22 in Q4 2023.
Overall, the fluctuating financial leverage ratio of Cleveland-Cliffs Inc suggests varying levels of financial risk and leverage in the company's capital structure. It will be important for stakeholders to monitor these trends to assess the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2023