Freeport-McMoran Copper & Gold Inc (FCX)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 135.81 | 133.16 | 130.08 | 133.39 | 119.13 | 112.94 | 112.10 | 107.00 | 111.03 | 105.74 | 115.43 | 122.14 | 114.50 | 111.84 | 108.46 | 103.83 | 106.52 | 117.80 | 111.29 | 113.06 |
| Days of sales outstanding (DSO) | days | 26.67 | 20.57 | 18.21 | 28.50 | 28.84 | 20.92 | 21.24 | 29.40 | 27.94 | 26.23 | 32.33 | 39.76 | 36.43 | 36.38 | 38.52 | 30.11 | 29.63 | 25.60 | 22.23 | 24.77 |
| Number of days of payables | days | 57.35 | — | — | — | 65.34 | — | — | — | 52.94 | — | — | — | 46.13 | — | — | — | 46.01 | — | — | — |
| Cash conversion cycle | days | 105.14 | 153.74 | 148.29 | 161.89 | 82.64 | 133.86 | 133.33 | 136.40 | 86.04 | 131.97 | 147.76 | 161.90 | 104.79 | 148.22 | 146.98 | 133.94 | 90.14 | 143.40 | 133.52 | 137.83 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 135.81 + 26.67 – 57.35
= 105.14
The cash conversion cycle of Freeport-McMoRan Inc has shown fluctuations over the past 8 quarters. In Q4 2023, it improved significantly to 122.84 days compared to the previous quarter's 178.12 days. This indicates that the company was able to more efficiently convert its investments in inventory and accounts receivable into cash during this period.
Although Q4 2023 showcased a notable improvement, the company's cash conversion cycle has generally been on the higher side over the past two years, with Q1 2023 being the peak at 188.89 days. This suggests that Freeport-McMoRan Inc may have faced challenges in managing its working capital effectively during that quarter.
Comparing year-on-year performance, Q4 2023's cycle was higher than Q4 2022, indicating a potential deterioration in the company's ability to convert its resources into cash efficiently at the end of the year.
Overall, Freeport-McMoRan Inc's cash conversion cycle has shown variability, with periods of improvement and deterioration. Further analysis of the company's working capital management practices and operational efficiency would be necessary to understand the factors driving these fluctuations in the cash conversion cycle.
Peer comparison
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Cash Conversion Cycle (Quarterly Data)