Freeport-McMoran Copper & Gold Inc (FCX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 15,695,000 | 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 | 11,994,000 | 12,159,000 | 12,905,000 | 13,120,000 | 13,038,000 | 13,532,000 | 13,530,000 |
| Inventory | US$ in thousands | 5,840,000 | 5,753,000 | 5,553,000 | 5,487,000 | 4,925,000 | 4,576,000 | 4,435,000 | 4,240,000 | 4,268,000 | 3,874,000 | 4,013,000 | 3,933,000 | 3,656,000 | 3,675,000 | 3,613,000 | 3,671,000 | 3,829,000 | 4,208,000 | 4,126,000 | 4,191,000 |
| 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 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,695,000K ÷ $5,840,000K
= 2.69
The inventory turnover for Freeport-McMoRan Inc has shown a gradual decrease over the past eight quarters, declining from 2.78 in Q1 2022 to 2.25 in Q4 2023. This downward trend indicates that the company is taking longer to sell its inventory, which may lead to higher carrying costs and potential obsolescence risks. It is essential for the company to closely monitor its inventory management practices to improve efficiency and optimize working capital utilization in order to enhance profitability and cash flow generation.
Peer comparison
Dec 31, 2023
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Inventory Turnover (Quarterly Data)