Freeport-McMoran Copper & Gold Inc (FCX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.69 | 2.74 | 2.81 | 2.74 | 3.06 | 3.23 | 3.26 | 3.41 | 3.29 | 3.45 | 3.16 | 2.99 | 3.19 | 3.26 | 3.37 | 3.52 | 3.43 | 3.10 | 3.28 | 3.23 | |
| DOH | days | 135.81 | 133.16 | 130.08 | 133.39 | 119.13 | 112.94 | 112.10 | 107.00 | 111.03 | 105.74 | 115.43 | 122.14 | 114.50 | 111.84 | 108.46 | 103.83 | 106.52 | 117.80 | 111.29 | 113.06 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.69
= 135.81
Based on the data provided, Freeport-McMoRan Inc's days of inventory on hand (DOH) have been fluctuating over the past eight quarters. The average DOH for the most recent quarter, Q4 2023, was 162.32 days, which indicates that on average, the company held its inventory for approximately 162 days before selling or using it.
Looking at the trend over the past two years, there has been a general increase in the number of days of inventory on hand. The DOH has gradually increased from 131.32 days in Q1 2022 to 162.32 days in Q4 2023. This suggests that Freeport-McMoRan Inc may be experiencing challenges in managing its inventory efficiently.
A high DOH may indicate that the company is overstocking inventory or facing difficulties in selling its products promptly. This could tie up cash flow and result in higher storage and holding costs. It may also suggest potential inefficiencies in the production or distribution process.
It is important for Freeport-McMoRan Inc to closely monitor and potentially optimize its inventory management practices to improve its DOH and overall operating efficiency. By reducing the number of days of inventory on hand, the company can potentially free up cash, reduce costs, and enhance its profitability.
Peer comparison
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Average Inventory Processing Period (Quarterly Data)