Freeport-McMoran Copper & Gold Inc (FCX)
Working capital 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 |
| Total current assets | US$ in thousands | 14,065,000 | 15,613,000 | 14,830,000 | 9,303,000 | 7,915,000 |
| Total current liabilities | US$ in thousands | 5,815,000 | 6,345,000 | 5,892,000 | 3,417,000 | 3,209,000 |
| Working capital turnover | 2.77 | 2.46 | 2.56 | 2.41 | 3.06 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $22,855,000K ÷ ($14,065,000K – $5,815,000K)
= 2.77
Freeport-McMoRan Inc's working capital turnover has shown some variability over the past five years, ranging from a low of 2.41 in 2020 to a high of 3.06 in 2019. The working capital turnover ratio indicates how well a company utilizes its working capital to generate sales revenue. A higher turnover ratio generally indicates better efficiency in managing working capital.
In 2023, the working capital turnover ratio was 2.77, reflecting an improvement compared to the previous year. This suggests that the company was able to generate more sales revenue per dollar of working capital, indicating improved efficiency in managing its current assets and liabilities.
Overall, while there has been some fluctuation in Freeport-McMoRan Inc's working capital turnover over the years, the general trend indicates a reasonably effective utilization of working capital to drive sales. Further analysis of the company's financial statements and industry benchmarks can provide additional insights into its working capital management efficiency.
Peer comparison
Dec 31, 2023