Cleveland-Cliffs Inc (CLF)

Solvency ratios

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
Debt-to-assets ratio 0.18 0.19 0.22 0.24 0.23 0.23 0.23 0.25 0.28 0.30 0.30 0.33 0.32 0.51 0.52 0.49 0.60 0.60 0.62 0.63
Debt-to-capital ratio 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 0.86 0.85 0.88 0.89
Debt-to-equity ratio 0.40 0.43 0.51 0.60 0.55 0.64 0.69 0.79 0.95 1.34 1.66 2.40 2.67 5.32 5.61 4.82 5.91 5.86 7.37 7.97
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

The solvency ratios of Cleveland-Cliffs Inc show a mixed trend over the past eight quarters. The debt-to-assets ratio, which measures the proportion of company assets financed by debt, has fluctuated between 0.18 and 0.25 during this period, indicating conservative leverage levels.

The debt-to-capital ratio, reflecting the extent of capital structure funded by debt, has also exhibited variability, ranging from 0.28 to 0.44. This suggests that the company has been using debt as a significant source of capital, with a trend towards higher leverage over time.

The debt-to-equity ratio, representing the balance between debt and equity in the company's capital structure, has shown a steady increase from 0.40 to 0.79. This indicates a higher reliance on debt financing compared to equity, which may pose higher financial risk for the company.

The financial leverage ratio, which measures the extent of assets financed by long-term debt, has shown fluctuations between 2.22 and 3.12. This indicates that the company's financial risk has varied over time, with a peak in Q1 2022.

Overall, Cleveland-Cliffs Inc's solvency ratios suggest a mixed picture of financial leverage and debt management during the analyzed period. It is important for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity in its capital structure.

Coverage ratios

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
Interest coverage 29.43 33.06 25.39 45.22 114.06 180.00 276.59 308.06 267.47 130.43 37.85 2.36 -2.47 -3.61 -2.17 11.32 17.30 26.18 42.97 67.57

Interest coverage is a key financial ratio that reflects a company's ability to meet its interest obligations with its operating income. In the case of Cleveland-Cliffs Inc, the interest coverage ratio has shown a declining trend over the past quarters.

In Q4 2023, Cleveland-Cliffs Inc had an interest coverage ratio of 2.82, which indicates that the company's operating income was able to cover its interest expenses approximately 2.82 times. This was a decrease from the previous quarter where the ratio was 2.12.

The trend of declining interest coverage ratios raises concerns about the company's ability to comfortably meet its interest payments in the future. A lower interest coverage ratio suggests that the company may be at a higher risk of defaulting on its debt obligations if its operating income declines or interest rates increase.

It is important for Cleveland-Cliffs Inc to closely monitor its interest coverage ratio and take necessary steps to improve it, such as increasing operating income, reducing debt levels, or refinancing debt at lower interest rates. This will help enhance the company's financial stability and creditor confidence.