Cleveland-Cliffs (FRA:CVA) ROCE % : -5.92% (As of Sep. 2024)

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What is Cleveland-Cliffs ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cleveland-Cliffs's annualized ROCE % for the quarter that ended in Sep. 2024 was -5.92%.

Cleveland-Cliffs ROCE % Historical Data

The historical data trend for Cleveland-Cliffs's ROCE % can be seen below:

* 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.

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Cleveland-Cliffs ROCE % Chart

Cleveland-Cliffs Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.61

0.52

29.29

13.97

5.97

Cleveland-Cliffs Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															10.14	-1.24	0.09	1.85	-5.92

Cleveland-Cliffs ROCE % Calculation

Cleveland-Cliffs's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	812.462	/	( ( (17704.72 - 3350.256)	+	(16081.429 - 3216.836) )	/ 2 )
	=	812.462	/	( (14354.464	+	12864.593)	/ 2 )
	=	812.462	/	13609.5285
	=	5.97 %

Cleveland-Cliffs's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	-735.216	/	( ( (15726.112 - 3082.422)	+	(15133.196 - 2932.755) )	/ 2 )
	=	-735.216	/	( ( 12643.69	+	12200.441 )	/ 2 )
	=	-735.216	/	12422.0655
	=	-5.92 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Cleveland-Cliffs (FRA:CVA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cleveland-Cliffs ROCE % Related Terms

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Cleveland-Cliffs Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Cleveland-Cliffs Inc (FRA:CVA) » Definitions » ROCE %

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Traded in Other Exchanges

CLF:USA CLF:Mexico 1CVA:Italy 0I0H:UK CVA:Germany

Address

200 Public Square, Suite 3300, Cleveland, OH, USA, 44114-2315

Website

https://www.clevelandcliffs.com

Cleveland-Cliffs Inc is a flat-rolled steel producer and manufacturer of iron ore pellets in North America. It is organized into four operating segments based on differentiated products, Steelmaking, Tubular, Tooling and Stamping and European Operations, but operates through one reportable segment -Steelmaking. It is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. It serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Geographically, it operates in the United States, Canada and other countries. The majority of revenue is from the United States. It is a supplier of steel to the automotive industry in North America.