Freeport-McMoran Copper & Gold Inc (FCX)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 25,344,000 | 25,423,000 | 24,457,000 | 23,570,000 | 22,749,000 | 22,708,000 | 21,887,000 | 21,566,000 | 22,780,000 | 23,186,000 | 24,266,000 | 24,598,000 | 22,845,000 | 21,176,000 | 18,944,000 | 16,250,000 | 14,198,000 | 13,614,000 | 13,071,000 | 13,563,000 |
| Total current assets | US$ in thousands | 13,296,000 | 14,545,000 | 14,722,000 | 14,842,000 | 14,065,000 | 14,077,000 | 14,057,000 | 14,746,000 | 15,613,000 | 15,373,000 | 16,182,000 | 15,302,000 | 14,830,000 | 13,791,000 | 12,599,000 | 10,856,000 | 9,303,000 | 8,071,000 | 7,155,000 | 7,357,000 |
| Total current liabilities | US$ in thousands | 5,496,000 | 6,247,000 | 6,136,000 | 6,305,000 | 5,815,000 | 4,860,000 | 4,788,000 | 5,281,000 | 6,345,000 | 5,999,000 | 5,932,000 | 6,454,000 | 5,892,000 | 5,523,000 | 5,527,000 | 4,611,000 | 3,417,000 | 3,096,000 | 2,906,000 | 3,143,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $25,344,000K ÷ ($13,296,000K – $5,496,000K)
= 3.25
Freeport-McMoran Copper & Gold Inc's working capital turnover has shown fluctuations over the past few years, ranging from a low of 2.28 to a high of 3.25. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
A higher working capital turnover ratio is generally preferred as it indicates that the company is efficiently managing its working capital to support its sales activities. On the contrary, a lower ratio may suggest inefficiencies in managing working capital, leading to potential liquidity issues.
Analyzing the trend of Freeport-McMoran's working capital turnover, we can observe fluctuations in the ratio over the periods. The ratio peaked at 3.25 in December 31, 2024, indicating a more efficient utilization of working capital to generate sales. However, the ratio has shown some variability over time, suggesting potential changes in the company's working capital management practices or sales performance.
Overall, while the working capital turnover ratio for Freeport-McMoran has shown fluctuations, it is essential to further investigate the underlying factors influencing these variations to assess the company's overall efficiency in managing its working capital resources.
Peer comparison
Dec 31, 2024
See also:
Freeport-McMoran Copper & Gold Inc Working Capital Turnover (Quarterly Data)