Freeport-McMoran Copper & Gold Inc (FCX)

Liquidity ratios

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
Current ratio 2.42 2.33 2.40 2.35 2.42 2.90 2.94 2.79 2.46 2.56 2.73 2.37 2.52 2.50 2.28 2.35 2.72 2.61 2.46 2.34
Quick ratio 0.71 0.98 1.03 0.99 1.03 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
Cash ratio 0.71 0.98 1.03 0.99 1.03 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

Freeport-McMoran Copper & Gold Inc's liquidity ratios indicate a healthy ability to meet its short-term obligations.

The current ratio has shown a generally increasing trend over the past few years, starting at 2.34 on March 31, 2020, and reaching 2.42 on December 31, 2024. This ratio remained above 2 throughout the period, indicating that the company had more than enough current assets to cover its current liabilities.

The quick ratio, which excludes inventory from current assets, also displayed an upward trajectory, going from 0.51 on March 31, 2020, to 1.03 on December 31, 2024. This trend suggests that Freeport-McMoran Copper & Gold Inc has a strong ability to meet its short-term liabilities using its most liquid assets.

The cash ratio, which provides the most stringent measure of liquidity by only considering cash and cash equivalents, mirrored the quick ratio's pattern. It increased from 0.51 on March 31, 2020, to 0.71 on December 31, 2024, reinforcing the company's ability to meet immediate obligations without relying heavily on inventory or receivables.

Overall, the liquidity ratios of Freeport-McMoran Copper & Gold Inc demonstrate a stable and robust financial position, enabling the company to navigate short-term financial challenges effectively.

See also:

Freeport-McMoran Copper & Gold Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Freeport-McMoran Copper & Gold Inc, the trend in the cash conversion cycle over the past few years shows fluctuations but generally indicates a moderate efficiency in managing its working capital.

From March 31, 2020, to December 31, 2024, the cash conversion cycle has ranged from a low of 109.13 days to a high of 140.65 days. The cycle peaked in December 31, 2023, at 140.65 days, indicating a longer period required to convert resources into cash. This increase might be attributed to various factors such as changes in sales patterns, inventory management issues, or extended credit terms offered to customers.

However, it is noteworthy that the company improved its cash conversion efficiency by reducing the cycle to 133.73 days by September 30, 2024, after the peak in December 31, 2023. This suggests that Freeport-McMoran Copper & Gold Inc took steps to enhance its working capital management, potentially by streamlining operations, reducing excess inventory, or accelerating collection from customers.

Overall, the cash conversion cycle for Freeport-McMoran Copper & Gold Inc fluctuates within a reasonable range, indicating an ability to efficiently manage working capital and convert resources into cash flows. Maintaining a focus on optimizing this cycle will be crucial for the company to ensure healthy liquidity and sustainable operations in the future.