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Cleveland-Cliffs Financial Strength

: 5 (As of Jun. 2022)
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Cleveland-Cliffs has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Cleveland-Cliffs's Interest Coverage for the quarter that ended in Jun. 2022 was 13.13. Cleveland-Cliffs's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.18. As of today, Cleveland-Cliffs's Altman Z-Score is 2.83.


Competitive Comparison

For the Steel subindustry, Cleveland-Cliffs's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Cleveland-Cliffs Financial Strength Distribution

For the Steel industry and Basic Materials sector, Cleveland-Cliffs's Financial Strength distribution charts can be found below:

* The bar in red indicates where Cleveland-Cliffs's Financial Strength falls into.



Cleveland-Cliffs Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Cleveland-Cliffs's Interest Expense for the months ended in Jun. 2022 was $-64 Mil. Its Operating Income for the months ended in Jun. 2022 was $840 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,668 Mil.

Cleveland-Cliffs's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*840/-64
=13.13

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Cleveland-Cliffs's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 4668) / 25348
=0.18

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Cleveland-Cliffs has a Z-score of 2.83, indicating it is in Grey Zones. This implies that Cleveland-Cliffs is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.83 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cleveland-Cliffs  (NYSE:CLF) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Cleveland-Cliffs has the Financial Strength Rank of 5.


Cleveland-Cliffs Financial Strength Related Terms

Thank you for viewing the detailed overview of Cleveland-Cliffs's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Cleveland-Cliffs Business Description

Cleveland-Cliffs logo
Address
200 Public Square, Suite 3300, Cleveland, OH, USA, 44114-2315
Cleveland-Cliffs Inc is a flat-rolled steel producer and a manufacturer of iron ore pellets in North America. It is vertically integrated from mined raw materials and direct reduced iron to primary steelmaking and downstream finishing, stamping, tooling and tubing. The company serves a diverse range of markets due to its comprehensive offering of flat-rolled steel products and supplying of steel to the automotive industry in North America. The group employs approximately 26,000 people across its mining, steel and downstream manufacturing operations in the United States and Canada.
Executives
Goncalves Celso L Jr officer: EVP, CFO 200 PUBLIC SQUARE SUITE 3300 CLEVELAND OH 44114
Arcelormittal North America Holdings Llc other: Former 10% Owner 1 SOUTH DEARBORN STREET, 13TH FLOOR CHICAGO IL 60603
Arcelormittal other: Former 10% Owner 24-26, BOULEVARD D?AVRANCHES L-1160 LUXEMBOURG GRAND DUCHY OF LUXEMBOURG N4 00000
Floriani Kimberly A officer: VP, Corp Controller & CAO 200 PUBLIC SQUARE SUITE 3300 CLEVELAND OH 44114
Yocum Arlene M director 99 PINE STREET ALBANY NY 12207
Michael Ralph S Iii director
Gerber William K director 999 WEST BIG BEAVER ROAD TROY MI 48084
Forrester Traci L officer: EVP, Business Development 200 PUBLIC SQUARE SUITE 3300 CLEVELAND OH 44114
Koci Keith officer: EVP, Chief Financial Officer ONE RIVERWAY SUITE 1100 HOUSTON TX 77056
Harlan M Ann director
Miller Janet L director 200 PUBLIC SQUARE SUITE 3300 CLEVELAND OH 44114
Cebula R Christopher officer: VP, Corporate Controller & CAO 200 PUBLIC SQUARE, SUITE 3300 CLEVELAND OH 44114
Rychel Eric M director 200 PUBLIC SQUARE, SUITE 3300 CLEVELAND OH 44114
Webb David L officer: EVP, Global Coal 200 PUBLIC SQUARE SUITE 3300 CLEVELAND OH 44114
Flanagan Timothy K officer: VP, Corp Controller & CAO C/O GRAFTECH INTERNATIONAL LTD. 982 KEYNOTE CIRCLE BROOKLYN HEIGHTS OH 44131

Cleveland-Cliffs Headlines

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