Freeport-McMoran Copper & Gold Inc (FCX)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 22,855,000 | 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 | 12,916,000 | 13,408,000 | 14,402,000 | 14,175,000 | 15,930,000 | 17,552,000 |
| Total current assets | US$ in thousands | 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 | 7,915,000 | 8,347,000 | 8,730,000 | 9,045,000 |
| Total current liabilities | US$ in thousands | 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 | 3,209,000 | 3,381,000 | 3,286,000 | 3,247,000 |
| Working capital turnover | 2.77 | 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 | 3.04 | 3.18 | 3.06 | 2.85 | 2.93 | 3.03 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $22,855,000K ÷ ($14,065,000K – $5,815,000K)
= 2.77
The working capital turnover ratio for Freeport-McMoRan Inc has fluctuated over the past eight quarters, ranging from a low of 2.28 in Q1 2023 to a high of 2.78 in Q1 2022. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
A higher ratio indicates that the company is effectively using its working capital to generate sales, while a lower ratio may suggest inefficiencies in managing working capital. During Q4 2023, the working capital turnover ratio stood at 2.77, indicating that for every dollar of working capital, the company generated approximately $2.77 in sales revenue.
Overall, the trend in working capital turnover for Freeport-McMoRan Inc has shown some variability but has generally remained within a relatively narrow range over the past two years, suggesting stable efficiency in utilizing working capital to support revenue generation. It is essential for the company to continue monitoring and optimizing its working capital management to sustain operational efficiency and financial performance.
Peer comparison
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Working Capital Turnover (Quarterly Data)