Freeport-McMoran Copper & Gold Inc (FCX)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,695,000 | 15,089,000 | 14,030,000 | 11,655,000 | 13,125,000 |
| Payables | US$ in thousands | 2,466,000 | 2,701,000 | 2,035,000 | 1,473,000 | 1,654,000 |
| Payables turnover | 6.36 | 5.59 | 6.89 | 7.91 | 7.94 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,695,000K ÷ $2,466,000K
= 6.36
Freeport-McMoRan Inc's payables turnover has been fluctuating over the past five years. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by evaluating how many times the company pays off its suppliers in a given period.
The payables turnover ratio for Freeport-McMoRan Inc was 5.53 in 2023, which increased from 4.83 in 2022 but decreased from 5.90 in 2021. The ratio was notably lower compared to the figures recorded in 2020 and 2019, which were 6.81 and 6.96, respectively.
A high payables turnover ratio may suggest that the company is paying its suppliers quickly, which could potentially strain cash flow. Conversely, a low ratio could indicate slower payments to suppliers, potentially leading to strained supplier relationships or missed discounts for early payment.
It is essential for Freeport-McMoRan Inc to evaluate its payables turnover ratio in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of its liquidity management and supplier relationships. Any significant changes in the payables turnover ratio should be carefully analyzed to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023