Freeport-McMoran Copper & Gold Inc (FCX)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 139.64 | 140.93 | 125.30 | 116.99 | 121.92 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 139.64 | 140.93 | 125.30 | 116.99 | 121.92 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 139.64 + — – —
= 139.64
The cash conversion cycle of Freeport-McMoran Copper & Gold Inc has shown fluctuations over the past five years.
In 2020, the cash conversion cycle was 121.92 days, indicating that the company took around 122 days to convert its investments in inventory and other resources into cash from sales.
By the end of 2021, the cash conversion cycle decreased to 116.99 days, suggesting that the company improved its efficiency in managing working capital and converting its assets into cash more quickly.
However, in 2022, the cash conversion cycle increased to 125.30 days, which may imply a slowdown in the company's efficiency in managing its working capital and converting resources into cash.
In 2023, the cash conversion cycle further increased to 140.93 days, indicating a potential issue in efficiently managing its working capital and converting assets into cash.
By the end of 2024, the cash conversion cycle remained high at 139.64 days, indicating that the company continued to face challenges in converting its resources into cash efficiently.
Overall, the trend suggests some inconsistencies in the management of working capital and the conversion of assets into cash over the past five years. Further analysis and actions may be required to improve the cash conversion cycle and enhance the company's liquidity position.
Peer comparison
Dec 31, 2024