Freeport-McMoran Copper & Gold Inc (FCX)
Days of inventory on hand (DOH)
| 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 | |
| DOH | days | 139.64 | 140.93 | 125.30 | 116.99 | 121.92 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.61
= 139.64
The days of inventory on hand (DOH) ratio for Freeport-McMoran Copper & Gold Inc shows a fluctuating trend over the years. In 2020, the DOH was 121.92 days, which decreased slightly to 116.99 days in 2021. However, there was an increase in the DOH to 125.30 days in 2022, followed by a significant jump to 140.93 days in 2023, indicating that the company may be holding onto inventory for a longer period.
In 2024, the DOH decreased slightly to 139.64 days, but it still remains elevated compared to the previous years. A higher DOH can indicate inefficiencies in inventory management, such as overstocking or slowing sales.
It is essential for Freeport-McMoran to closely monitor its inventory levels to ensure they are optimizing working capital and not tying up excess funds in unsold inventory. Additionally, analyzing the reasons behind the fluctuations in DOH can help the company make informed decisions to improve inventory turnover and overall operational efficiency.
Peer comparison
Dec 31, 2024
See also:
Freeport-McMoran Copper & Gold Inc Average Inventory Processing Period