Freeport-McMoran Copper & Gold Inc (FCX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 22,855,000 | 22,708,000 | 21,887,000 | 21,566,000 | 22,780,000 | 23,186,000 | 24,266,000 | 24,598,000 | 22,845,000 | 21,176,000 | 18,944,000 | 16,250,000 | 14,198,000 | 13,614,000 | 12,916,000 | 13,408,000 | 14,402,000 | 14,175,000 | 15,930,000 | 17,552,000 |
| Property, plant and equipment | US$ in thousands | 35,295,000 | 34,535,000 | 33,845,000 | 33,159,000 | 32,627,000 | 31,814,000 | 31,200,000 | 30,708,000 | 30,345,000 | 30,102,000 | 29,836,000 | 29,775,000 | 29,818,000 | 29,911,000 | 29,936,000 | 29,899,000 | 29,584,000 | 29,330,000 | 28,841,000 | 28,497,000 |
| Fixed asset turnover | 0.65 | 0.66 | 0.65 | 0.65 | 0.70 | 0.73 | 0.78 | 0.80 | 0.75 | 0.70 | 0.63 | 0.55 | 0.48 | 0.46 | 0.43 | 0.45 | 0.49 | 0.48 | 0.55 | 0.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $22,855,000K ÷ $35,295,000K
= 0.65
The fixed asset turnover ratio measures how efficiently Freeport-McMoRan Inc is generating revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets.
Looking at the data provided, we can observe that the fixed asset turnover ratio has been relatively stable around the range of 0.65 to 0.80 over the past eight quarters. This suggests that the company has been consistent in generating revenue from its fixed assets during this period.
The decreasing trend from Q1 2022 (0.80) to Q4 2023 (0.65) indicates a slight decrease in the efficiency of utilizing fixed assets to generate sales. The ratio fluctuated within a relatively narrow range across the quarters, indicating a steady performance in terms of asset turnover.
The fixed asset turnover ratio of below 1 suggests that Freeport-McMoRan Inc is generating less revenue compared to the value of its fixed assets. While the company may consider strategies to improve this ratio, it is important to consider the nature of the industry and the specific capital-intensive requirements of the business.
In conclusion, the fixed asset turnover ratio for Freeport-McMoRan Inc has shown stability over the quarters, indicating a consistent performance in generating revenue from its fixed assets, albeit at a relatively lower efficiency level.
Peer comparison
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Net Fixed Asset Turnover (Quarterly Data)