Freeport-McMoran Copper & Gold Inc (FCX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,455,000 | 22,855,000 | 22,780,000 | 22,845,000 | 14,198,000 |
| Total current assets | US$ in thousands | 13,296,000 | 14,065,000 | 15,613,000 | 14,830,000 | 9,303,000 |
| Total current liabilities | US$ in thousands | 5,496,000 | 5,815,000 | 6,345,000 | 5,892,000 | 3,417,000 |
| Working capital turnover | 3.26 | 2.77 | 2.46 | 2.56 | 2.41 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $25,455,000K ÷ ($13,296,000K – $5,496,000K)
= 3.26
The working capital turnover of Freeport-McMoran Copper & Gold Inc has shown a positive trend over the years based on the provided data.
In 2020, the working capital turnover was 2.41, indicating that the company generated $2.41 in revenue for every dollar of working capital invested. This ratio improved to 2.56 in 2021, suggesting an increase in efficiency in utilizing working capital to drive revenue.
Although there was a slight dip in 2022, with the working capital turnover decreasing to 2.46, the ratio rebounded strongly in 2023 to reach 2.77. This indicates that the company effectively managed its working capital to generate higher revenue.
By the end of 2024, the working capital turnover further improved to 3.26, demonstrating a notable efficiency in utilizing working capital to generate revenue, potentially reflecting improved management of both current assets and liabilities.
Overall, the increasing trend in working capital turnover for Freeport-McMoran Copper & Gold Inc indicates a positive efficiency in converting working capital into revenue over the years, showcasing effective management of the company's liquidity and operating activities.
Peer comparison
Dec 31, 2024