Freeport-McMoran Copper & Gold Inc (FCX)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.25 | 3.06 | 2.85 | 2.76 | 2.76 | 2.46 | 2.36 | 2.28 | 2.46 | 2.47 | 2.37 | 2.78 | 2.56 | 2.56 | 2.68 | 2.60 | 2.41 | 2.74 | 3.08 | 3.22 |
The analysis of Freeport-McMoran Copper & Gold Inc activity ratios reveals the following insights:
1. Inventory Turnover: The company's inventory turnover ratio has shown a fluctuating trend over the periods analyzed, ranging from a high of 3.34 to a low of 2.60. The decreasing trend in the latter periods may indicate potential issues with managing or selling inventory efficiently.
2. Receivables Turnover: The data provided does not include information on the receivables turnover ratio, which measures how effectively the company is collecting on credit sales. Without this data, it is challenging to assess the company's efficiency in collecting receivables.
3. Payables Turnover: Similarly, the data does not include information on the payables turnover ratio, which is crucial for evaluating how efficiently the company is managing its accounts payable. Without this data, it is difficult to assess the company's payment practices.
4. Working Capital Turnover: The working capital turnover ratio measures how well a company generates revenue relative to its working capital. Freeport-McMoran's working capital turnover ratio has shown a varying trend over the periods analyzed, suggesting fluctuations in how effectively the company converts its working capital into sales.
Overall, the analysis of Freeport-McMoran's activity ratios indicates mixed performance in managing its inventory and working capital. However, the absence of data on receivables and payables turnover ratios limits a comprehensive assessment of the company's overall efficiency in managing its short-term assets and liabilities.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 138.81 | 133.73 | 139.35 | 131.19 | 140.65 | 137.70 | 136.10 | 139.47 | 125.30 | 118.94 | 118.04 | 112.40 | 116.99 | 112.45 | 121.32 | 128.73 | 121.92 | 118.49 | 114.47 | 109.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Freeport-McMoran Copper & Gold Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
The calculation of inventory turnover divides the average inventory by cost of goods sold and multiplies by 365. It measures how many days a company takes to sell its inventory.
- The DOH for Freeport-McMoran Copper & Gold Inc has shown fluctuations over the periods provided, ranging from 109.13 days to 140.65 days.
- In the most recent period, the DOH was 138.81 days, indicating that the company takes approximately 138 days to sell its inventory.
- An increasing trend in DOH may suggest slower inventory turnover, tying up capital in unsold goods and potentially leading to increased carrying costs.
2. Days of Sales Outstanding (DSO):
DSO measures the average number of days a company takes to collect revenues after a sale is made.
- The data for Freeport-McMoran Copper & Gold Inc shows "N/A" for DSO across all periods, which may indicate that information regarding accounts receivable turnover is not available.
- Without DSO data, it is challenging to assess the efficiency of the company in collecting its receivables.
3. Number of Days of Payables:
This ratio indicates the average number of days a company takes to pay its suppliers.
- The data provided does not contain information on the number of days of payables for Freeport-McMoran Copper & Gold Inc.
- Lacking this information makes it difficult to evaluate the company's payment practices and liquidity management regarding its trade payables.
In conclusion, while the Days of Inventory on Hand ratio for Freeport-McMoran Copper & Gold Inc reflects the efficiency of inventory management, the unavailability of data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of the company's overall activity ratios related to receivables and payables.
See also:
Freeport-McMoran Copper & Gold Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 0.66 | 0.62 | 0.63 | 0.67 | 0.70 | 0.78 | 0.77 | 0.75 | 0.70 | 0.63 | 0.52 | 0.45 | 0.43 | 0.42 | 0.44 |
| Total asset turnover | 0.46 | 0.46 | 0.45 | 0.43 | 0.43 | 0.44 | 0.43 | 0.42 | 0.45 | 0.46 | 0.48 | 0.50 | 0.48 | 0.45 | 0.42 | 0.37 | 0.34 | 0.33 | 0.32 | 0.34 |
The Fixed Asset Turnover ratio for Freeport-McMoran Copper & Gold Inc has shown a fluctuating trend over the years, starting from 0.44 in March 2020, dropping to 0.42 by June 2020, and then gradually increasing to 0.78 by June 2022. Thereafter, it witnessed a slight decline to 0.62 by June 2023 and settled around 0.67 by December 2022. As of the latest available information, this ratio stands at 0.67.
On the other hand, the Total Asset Turnover ratio has also exhibited variability, with a range of 0.32 to 0.50 from June 2020 to March 2022. It peaked at 0.50 in March 2022 before experiencing a downward trend to 0.43 by December 2023. By the end of June 2024, the ratio has increased to 0.45, reflecting the company's ability to efficiently utilize its total assets to generate revenue.
Overall, the analysis of Freeport-McMoran Copper & Gold Inc's long-term activity ratios suggests that the company has been able to effectively manage and utilize its fixed assets and total assets to drive revenue generation over the years, although some fluctuations have been observed. It is essential for stakeholders to continue monitoring these ratios to understand the company's operational efficiency and asset utilization going forward.
See also:
Freeport-McMoran Copper & Gold Inc Long-term (Investment) Activity Ratios (Quarterly Data)