Revenue Analysis
Total and Operating Revenue: Over the past periods, the Total Revenue at CLF has shown fluctuations, peaking in Q3 2023 at $5.605 billion and as low as $5.199 billion in Q1 2024. Operating Revenue has consistently mirrored Total Revenue, indicating that most revenue is generated from core operations.
Gross Profit: Gross Profit has varied significantly, with the highest gross profit margin observed in Q2 2023 at $644 million, demonstrating a stronger performance in this quarter compared to a low of $99 million in Q1 2023.
Cost Management
Cost of Revenue: The Cost of Revenue has been relatively high, negatively impacting the gross margins. It ranged from $5.196 billion in Q1 2023 to $5.34 billion in Q2 2023.
Operating Expense and Total Expenses: Operating expenses were notably high in Q2 2023 at $161 million. Total Expenses peaked in Q2 2023 at $5.501 billion but generally trended upward, indicating rising costs.
Profitability Analysis
EBITDA: EBITDA peaked at $784 million in Q2 2023, indicating strong profitability during this period. In Q1 2024, however, it decreased significantly to $233 million.
Operating Income: Operating Income was highest in Q2 2023 at $483 million but fell sharply to $3 million in Q1 2024. This reflects varying operational efficiencies across periods.
Pretax Income and Net Income: Net Income has been inconsistent, with a significant low in Q1 2023 at -$57 million and a high in Q2 2023 at $347 million, mirroring trends in operational efficiency and cost management.
Cash Flow Indicators
Reconciled Depreciation: This steadily rose from $242 million in Q1 2023 to $249 million in Q3 2023, reflecting ongoing investment in asset durability.
Interest Expense: Interest Expense has remained stable, indicating consistent finance costs over the periods.
Taxation
Tax Rate: The effective tax rate has varied, with a noticeable rate of 23% in Q1 2023 and a lower rate in subsequent quarters.
Tax Provision: The Tax Provision saw a peak in Q2 2023 at $102 million concurrent with higher pre-tax profits.
Tax Effect of Unusual Items: Significant negative effects were observed in Q1 2024, at around -$24.79 million, influenced by unusual items.
Shareholder Metrics
EPS (Diluted and Basic): Earnings per Share exhibited a high of $0.68 in Q2 2023 and a low of -$0.31 in Q4 2023, signaling varying levels of profitability.
Average Shares: The number of shares has been stable, with minor fluctuations indicating no significant dilutive events or stock buybacks.
Net Income Available to Common Stockholders: This metric closely follows net income trends with highs and lows aligning with the operational profitability of CLF.
Conclusion
CLF’s financial performance has shown considerable variation across the reviewed periods. Revenue generation was strong, but profitability was heavily influenced by cost management issues and expense controls. Recommendations would focus on improving operational efficiencies, managing costs more effectively, and possibly reevaluating financial strategies to mitigate interest expenses and improve net income margins.