Freeport-McMoran Copper & Gold Inc (FCX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,855,000 | 22,780,000 | 22,845,000 | 14,198,000 | 14,402,000 |
| Receivables | US$ in thousands | 1,670,000 | 1,800,000 | 1,749,000 | 1,417,000 | 1,169,000 |
| Receivables turnover | 13.69 | 12.66 | 13.06 | 10.02 | 12.32 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $22,855,000K ÷ $1,670,000K
= 13.69
The receivables turnover ratio for Freeport-McMoRan Inc has shown a generally increasing trend over the past five years, indicating an improvement in the company's ability to collect payments from its customers. The ratio increased from 10.06 in 2020 to 13.73 in 2023, reaching its peak during this period.
A higher receivables turnover ratio suggests that the company is more efficient in converting its accounts receivable into cash, which is a positive indicator of its liquidity and management of credit policies. Freeport-McMoRan Inc's ability to collect payments from customers has strengthened over the years, as reflected in the upward trend of the receivables turnover ratio.
This improvement in receivables turnover could be attributed to various factors such as better credit control procedures, timely collection efforts, or changes in customer payment behavior. It indicates that the company has been effectively managing its accounts receivable and optimizing its cash flow position. Overall, the increasing trend in receivables turnover for Freeport-McMoRan Inc reflects positively on its financial health and operating efficiency.
Peer comparison
Dec 31, 2023