Freeport-McMoran Copper & Gold Inc (FCX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,758,000 | 8,146,000 | 8,068,000 | 3,657,000 | 2,020,000 |
| Short-term investments | US$ in thousands | 300,000 | 500,000 | — | — | 100,000 |
| Total current liabilities | US$ in thousands | 5,815,000 | 6,345,000 | 5,892,000 | 3,417,000 | 3,209,000 |
| Cash ratio | 0.87 | 1.36 | 1.37 | 1.07 | 0.66 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,758,000K
+ $300,000K)
÷ $5,815,000K
= 0.87
The cash ratio of Freeport-McMoRan Inc has fluctuated over the past five years. In 2023, the company's cash ratio was 0.88, indicating that for every dollar of current liabilities, the company had $0.88 of cash and cash equivalents on hand. This ratio has decreased from the prior year, where it was 1.36, and is also lower than the ratios reported in 2021 (1.46) and 2020 (1.17).
The declining trend in the cash ratio suggests that Freeport-McMoRan Inc's ability to cover its short-term obligations with its available cash has weakened over the years. A lower cash ratio may indicate a higher dependency on other sources of liquidity or a potential need to manage working capital more effectively.
Furthermore, compared to the cash ratio reported in 2019 (0.83), the current ratio in 2023 has improved. This indicates that Freeport-McMoRan Inc has enhanced its liquidity position compared to five years ago, but it still needs to focus on maintaining an adequate level of cash to meet its short-term obligations.
Overall, while the company's cash ratio has fluctuated over the years, careful monitoring of its cash position and liquidity management will be essential for Freeport-McMoRan Inc to ensure its financial stability and ability to meet its financial obligations in the future.
Peer comparison
Dec 31, 2023