Freeport-McMoran Copper & Gold Inc (FCX)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 13.69 | 17.74 | 20.04 | 12.81 | 12.66 | 17.45 | 17.19 | 12.42 | 13.06 | 13.91 | 11.29 | 9.18 | 10.02 | 10.03 | 9.48 | 12.12 | 12.32 | 14.26 | 16.42 | 14.74 | |
| DSO | days | 26.67 | 20.57 | 18.21 | 28.50 | 28.84 | 20.92 | 21.24 | 29.40 | 27.94 | 26.23 | 32.33 | 39.76 | 36.43 | 36.38 | 38.52 | 30.11 | 29.63 | 25.60 | 22.23 | 24.77 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.69
= 26.67
To analyze Freeport-McMoRan Inc's Days Sales Outstanding (DSO) over the given quarters, we observe a fluctuating trend in the collection period for receivables. The DSO indicates the average number of days it takes for a company to collect payments after making a sale.
From Q1 2022 to Q4 2023, the DSO ranged from a low of 18.21 days to a high of 29.40 days. The company experienced a peak DSO in Q1 2022 and Q4 2023. This suggests that in these quarters, Freeport-McMoRan Inc took a longer time to convert its sales into cash receipts.
Conversely, the lowest DSO was recorded in Q2 2023, indicating that the company improved its efficiency in collecting payments from customers during that period.
Overall, it is important for Freeport-McMoRan Inc to monitor its DSO closely, as a higher DSO may indicate inefficiencies in its account receivables management, affecting cash flow and liquidity. Conversely, a decreasing DSO trend indicates improved collection practices, potentially resulting in enhanced financial health and operational efficiency.
Peer comparison
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Average Receivable Collection Period (Quarterly Data)