Freeport-McMoran Copper & Gold Inc (FCX)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 138.81 | 133.73 | 139.35 | 131.19 | 140.65 | 137.70 | 136.10 | 139.47 | 125.30 | 118.94 | 118.04 | 112.40 | 116.99 | 112.45 | 121.32 | 128.73 | 121.92 | 118.49 | 114.47 | 109.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 138.81 | 133.73 | 139.35 | 131.19 | 140.65 | 137.70 | 136.10 | 139.47 | 125.30 | 118.94 | 118.04 | 112.40 | 116.99 | 112.45 | 121.32 | 128.73 | 121.92 | 118.49 | 114.47 | 109.13 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 138.81 + — – —
= 138.81
The cash conversion cycle of Freeport-McMoran Copper & Gold Inc has varied over the past few years based on the provided data. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory into cash flows from sales.
From March 2020 to December 2024, the cash conversion cycle fluctuated between 109.13 days to 138.81 days. This indicates that the company's efficiency in managing its working capital has gone through periods of improvement and deterioration.
It is worth noting that a shorter cash conversion cycle is generally favorable as it signifies that the company is able to quickly recover its investment in inventory. On the other hand, a longer cycle may suggest inefficiencies in managing inventory and collecting receivables.
The trend in Freeport-McMoran's cash conversion cycle shows some volatility, with occasional increases and decreases in the number of days it takes to convert inventory into cash. It would be important for the company to closely monitor and potentially improve its working capital management practices to maintain a healthy cash conversion cycle and optimize its cash flow position.
Peer comparison
Dec 31, 2024
See also:
Freeport-McMoran Copper & Gold Inc Cash Conversion Cycle (Quarterly Data)