Freeport-McMoran Copper & Gold Inc (FCX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,855,000 | 22,780,000 | 22,845,000 | 14,198,000 | 14,402,000 |
| Property, plant and equipment | US$ in thousands | 35,295,000 | 32,627,000 | 30,345,000 | 29,818,000 | 29,584,000 |
| Fixed asset turnover | 0.65 | 0.70 | 0.75 | 0.48 | 0.49 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $22,855,000K ÷ $35,295,000K
= 0.65
Freeport-McMoRan Inc's fixed asset turnover has shown a declining trend from 2019 to 2023. The ratio has decreased from 0.49 in 2019 to 0.65 in 2023. This indicates that the company generated less revenue relative to its investment in fixed assets over this period. A lower fixed asset turnover may suggest inefficiencies in asset utilization or a decrease in revenue generation capacity. Further analysis is recommended to understand the factors contributing to this decline and to assess the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2023
Company name
Symbol
Fixed asset turnover
Freeport-McMoran Copper & Gold Inc
FCX
0.65
Cleveland-Cliffs Inc
CLF
2.47
MP Materials Corp
MP
0.21