Liabilities Breakdown
Current Liabilities
3 B
Long-Term Liabilities
| Total Liabilities | 3.54 Billion | |
| Current Liabilities | 553.28 Million | |
| Long-Term Liabilities | 2.99 Billion | |
| Tax Liabilities | 32.79 Million |
Will Cleveland Cliffs (NYSE:CLF) debt increase in August
 | By Raphi Shpitalnik | Macroaxis Story |
Cleveland Cliffs is scheduled to announce its earnings today. The next earnings report is expected on the 28th of October 2020. Cleveland Cliffs Average Assets are projected to decrease significantly based on the last few years of reporting. The past year's Average Assets were at 3.42 Billion. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 535.9 M, whereas Free Cash Flow is forecasted to decline to (96 M). As many passive investors are finally getting excited about basic materials space, Cleveland Cliffs could be a good starting point.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
This firm has 4.67 B in debt with debt to equity (D/E) ratio of 3.79, meaning that the firm heavily relies on borrowing funds for operations. The company has a current ratio of 2.2, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Cleveland Cliffs financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cleveland Cliffs, including all of Cleveland Cliffs's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Cleveland Cliffs assets, the company is considered highly leveraged. Understanding the composition and structure of overall Cleveland Cliffs debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Cleveland Total Liabilities
Cleveland Cliffs liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Cleveland Cliffs has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Cleveland Cliffs balance sheet include debt obligations and money owed to different Cleveland Cliffs vendors, workers, and loan providers. Below is the chart of Cleveland short long-term liabilities accounts currently reported on its balance sheet. You can use Cleveland Cliffs financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Cleveland Cliffs's Liquidity
Cleveland Cliffs financial leverage refers to using borrowed capital as a funding source to finance Cleveland Cliffs ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cleveland Cliffs financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cleveland Cliffs' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cleveland Cliffs' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cleveland Cliffs's total debt and its cash.
An Additional Perspective On Cleveland Cliffs
The latest price surge of Cleveland Cliffs could raise concerns from shareholders as the firm closed today at a share price of 5.67 on 8,119,317 in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.2. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Cleveland Cliffs partners.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cleveland Cliffs. Please refer to our Terms of Use for any information regarding our disclosure principles.