Freeport-McMoran Copper & Gold Inc (FCX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,758,000 | 5,745,000 | 6,683,000 | 6,852,000 | 8,146,000 | 8,578,000 | 9,492,000 | 8,338,000 | 8,068,000 | 7,672,000 | 6,313,000 | 4,580,000 | 3,657,000 | 2,403,000 | 1,465,000 | 1,602,000 | 2,020,000 | 2,247,000 | 2,623,000 | 2,833,000 |
| Short-term investments | US$ in thousands | 300,000 | 300,000 | — | — | 500,000 | — | — | — | — | — | — | — | — | — | — | — | 100,000 | 100,000 | 218,000 | 115,000 |
| Total current liabilities | US$ in thousands | 5,815,000 | 4,860,000 | 4,788,000 | 5,281,000 | 6,345,000 | 5,999,000 | 5,932,000 | 6,454,000 | 5,892,000 | 5,523,000 | 5,527,000 | 4,611,000 | 3,417,000 | 3,096,000 | 2,906,000 | 3,143,000 | 3,209,000 | 3,381,000 | 3,286,000 | 3,247,000 |
| Cash ratio | 0.87 | 1.24 | 1.40 | 1.30 | 1.36 | 1.43 | 1.60 | 1.29 | 1.37 | 1.39 | 1.14 | 0.99 | 1.07 | 0.78 | 0.50 | 0.51 | 0.66 | 0.69 | 0.86 | 0.91 |
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 shown some fluctuations over the past eight quarters, ranging from 0.88 to 1.70. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing.
In Q2 2022, the company had the highest cash ratio of 1.70, indicating a significant liquidity position at that time. However, the cash ratio has since decreased and fluctuated in the subsequent quarters. In Q4 2023, the cash ratio was 0.88, the lowest among the reported quarters, suggesting a relatively weaker ability to cover short-term liabilities with available cash.
Overall, while the cash ratios have varied, it is important to assess the trend over time and compare it with industry benchmarks to evaluate Freeport-McMoRan Inc's liquidity position accurately. Further analysis of the company's cash flow and working capital management may provide additional insights into its ability to meet its financial obligations in the short term.
Peer comparison
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Cash Ratio (Quarterly Data)