Freeport-McMoran Copper & Gold Inc (FCX)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	2.61	2.59	2.91	3.12	2.99
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	3.26	2.77	2.46	2.56	2.41

1. Inventory Turnover:
- The company's inventory turnover has shown a slight increase from 2.99 in 2020 to 3.12 in 2021, with a subsequent decrease to 2.91 in 2022 and a further decline to 2.59 in 2023 before stabilizing at 2.61 in 2024. This indicates that the company is managing its inventory efficiently, as it is able to sell and replace its inventory items at a reasonable pace.

2. Receivables Turnover:
- The receivables turnover ratio data is not available for the given years. This could imply that the company does not have a significant level of accounts receivable or that the data is not disclosed in the available information.

3. Payables Turnover:
- The payables turnover data is not provided for the specified years. This may suggest that the company's payables turnover ratio is not deemed relevant for analysis based on the available data.

4. Working Capital Turnover:
- The working capital turnover has shown an increasing trend over the years, starting at 2.41 in 2020 and reaching 3.26 in 2024. This suggests that the company is utilizing its working capital more efficiently to generate sales. The increasing trend indicates a positive sign of operational efficiency and effective use of resources.

Overall, based on the available activity ratio data, Freeport-McMoran Copper & Gold Inc seems to be managing its inventory efficiently, utilizing its working capital effectively, while details regarding its receivables and payables turnover remain undisclosed in the provided information.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	139.64	140.93	125.30	116.99	121.92
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

The activity ratios provide valuable insights into the efficiency of Freeport-McMoran Copper & Gold Inc's operations.

1. Days of Inventory on Hand (DOH):
- The trend in the DOH ratio indicates the number of days it takes for the company to sell its inventory. A decreasing trend in DOH from 121.92 days in 2020 to 116.99 days in 2021, followed by an increase to 125.30 days in 2022, and a further increase to 140.93 days in 2023, and then a slight decrease to 139.64 days in 2024, suggests fluctuating inventory management efficiency. Ideally, lower DOH values indicate faster inventory turnover, which could lead to lower storage costs and higher cash flow.

2. Days of Sales Outstanding (DSO):
- The absence of data for DSO for all the years indicates that the company has not disclosed information related to the average collection period for its accounts receivable. This ratio is important in assessing the company's effectiveness in collecting cash from credit sales.

3. Number of Days of Payables:
- The lack of information on the number of days of payables for all the years suggests that the company has not provided details on the average payment period for its outstanding payables. This ratio helps in understanding how long the company takes to settle its outstanding bills to suppliers.

In conclusion, while the DOH figures show fluctuations in inventory management efficiency, the absence of DSO and payables data limits a comprehensive assessment of Freeport-McMoran Copper & Gold Inc's overall activity ratio performance.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	0.67	0.75	0.45
Total asset turnover	0.46	0.44	0.45	0.48	0.34

The fixed asset turnover ratio for Freeport-McMoran Copper & Gold Inc has shown a trend of improvement from 0.45 in 2020 to 0.75 in 2021, although there was a slight decrease to 0.67 in 2022. However, the data for 2023 and 2024 are unavailable.

This ratio indicates how efficiently the company is generating sales revenue from its fixed assets. The increase in the fixed asset turnover ratio over time suggests that the company has become more efficient in utilizing its fixed assets to generate sales.

In contrast, the total asset turnover ratio for Freeport-McMoran Copper & Gold Inc has fluctuated within a relatively narrow range over the years, with values of 0.34 in 2020, 0.48 in 2021, 0.45 in 2022, 0.44 in 2023, and 0.46 in 2024.

The total asset turnover ratio measures the company's ability to generate sales from its total assets. The varying but stable nature of this ratio indicates that the company is effectively utilizing its total assets to generate revenue, although there has not been a consistent upward or downward trend observed over the years.

In conclusion, the fixed asset turnover ratio has shown improvement, suggesting increased efficiency in utilizing fixed assets, while the total asset turnover ratio has demonstrated stability in utilizing total assets to generate sales revenue. Further analysis would be required to determine the underlying factors contributing to these trends and fluctuations.