Freeport-McMoran Copper & Gold Inc (FCX)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 17,901,000 | 17,586,000 | 16,957,000 | 16,629,000 | 15,726,000 | 15,769,000 | 15,582,000 | 15,014,000 | 15,089,000 | 14,789,000 | 14,441,000 | 14,463,000 | 14,030,000 | 13,373,000 | 12,690,000 | 11,753,000 | 11,655,000 | 11,989,000 | 12,149,000 | 12,890,000 |
| Inventory | US$ in thousands | 6,808,000 | 6,443,000 | 6,474,000 | 5,977,000 | 6,060,000 | 5,949,000 | 5,810,000 | 5,737,000 | 5,180,000 | 4,819,000 | 4,670,000 | 4,454,000 | 4,497,000 | 4,120,000 | 4,218,000 | 4,145,000 | 3,893,000 | 3,892,000 | 3,810,000 | 3,854,000 |
| Inventory turnover | 2.63 | 2.73 | 2.62 | 2.78 | 2.60 | 2.65 | 2.68 | 2.62 | 2.91 | 3.07 | 3.09 | 3.25 | 3.12 | 3.25 | 3.01 | 2.84 | 2.99 | 3.08 | 3.19 | 3.34 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $17,901,000K ÷ $6,808,000K
= 2.63
Freeport-McMoran Copper & Gold Inc's inventory turnover has exhibited some fluctuation over the periods analyzed. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times the inventory is sold and replaced during a specific period.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged from a high of 3.34 to a low of 2.60. The company experienced a general decreasing trend in inventory turnover from 3.34 on March 31, 2020, to 2.63 on December 31, 2024. This decline could suggest potential inefficiencies in managing inventory or a change in the company's sales patterns.
There were fluctuations in the inventory turnover ratio throughout the periods analyzed, with some periods showing increases while others showed decreases. For example, from March 31, 2020, to September 30, 2021, the inventory turnover ratio decreased from 3.34 to 3.25 before increasing to 3.25 again on March 31, 2022.
It is important to further investigate the reasons behind these fluctuations in inventory turnover to determine if they are the result of changing sales trends, inventory management practices, or other factors affecting the company's operations. A comprehensive analysis would involve comparing the inventory turnover ratio to industry benchmarks and evaluating the company's inventory management strategies.
Peer comparison
Dec 31, 2024
Dec 31, 2024
See also:
Freeport-McMoran Copper & Gold Inc Inventory Turnover (Quarterly Data)