Freeport-McMoran Copper & Gold Inc (FCX)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 3,923,000 4,758,000 8,146,000 8,068,000 3,657,000
Short-term investments US$ in thousands 300,000 500,000
Total current liabilities US$ in thousands 5,496,000 5,815,000 6,345,000 5,892,000 3,417,000
Cash ratio 0.71 0.87 1.36 1.37 1.07

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,923,000K + $—K) ÷ $5,496,000K
= 0.71

The cash ratio of Freeport-McMoran Copper & Gold Inc has shown some fluctuations over the past five years. In December 31, 2020, the cash ratio was 1.07, indicating that the company had $1.07 of cash and cash equivalents for every $1 of current liabilities.

By December 31, 2021, the cash ratio increased to 1.37, suggesting an improvement in the company's liquidity position. This indicates that the company had $1.37 of cash and cash equivalents for every $1 of current liabilities, reflecting a stronger ability to meet its short-term obligations from its liquid assets.

In December 31, 2022, the cash ratio remained relatively stable at 1.36, indicating continued sound liquidity position. However, by December 31, 2023, there was a notable decrease in the cash ratio to 0.87. This decline suggests a potential reduction in the company's ability to cover its short-term liabilities with its available cash resources.

Moreover, by December 31, 2024, the cash ratio decreased further to 0.71, indicating a significant decline in the liquidity position of Freeport-McMoran Copper & Gold Inc. This low ratio may raise concerns about the company's ability to meet its short-term obligations using its existing cash and cash equivalents.

Overall, the trend in the cash ratio of Freeport-McMoran Copper & Gold Inc indicates fluctuations in its liquidity position over the five-year period, with varying levels of ability to cover its short-term liabilities with cash and cash equivalents. Further analysis of the company's cash management practices and financial strategy may be warranted to better understand the factors driving these fluctuations in the cash ratio.


Peer comparison

Dec 31, 2024

Company name
Symbol
Cash ratio
Freeport-McMoran Copper & Gold Inc
FCX
0.71
Cleveland-Cliffs Inc
CLF
0.02
MP Materials Corp
MP
5.19

See also:

Freeport-McMoran Copper & Gold Inc Cash Ratio