Freeport-McMoran Copper & Gold Inc (FCX)

Liquidity ratios

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
Current ratio 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 2.47 2.47 2.66 2.79
Quick ratio 1.16 1.51 1.62 1.62 1.65 1.65 1.84 1.60 1.67 1.66 1.45 1.38 1.48 1.21 0.97 0.86 1.02 0.99 1.16 1.27
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

The liquidity ratios of Freeport-McMoRan Inc highlight the company's ability to meet its short-term obligations. The current ratio has shown variability over the past eight quarters, ranging from a low of 2.37 in Q1 2022 to a high of 2.94 in Q2 2023. This ratio indicates that the company has generally maintained a relatively strong current position, with assets readily available to cover its current liabilities.

The quick ratio, which excludes inventory from current assets, also demonstrates some fluctuation over the same period, with values ranging from 1.17 to 1.94. This ratio suggests that the company may have a slightly more conservative approach to liquidity, as it provides a more stringent measure of short-term liquidity compared to the current ratio.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has ranged from 0.88 to 1.70 over the past eight quarters. This ratio indicates the company's ability to cover current liabilities solely with its available cash resources.

Overall, while Freeport-McMoRan Inc has shown some variability in its liquidity ratios, the company generally appears to have maintained a solid liquidity position over the analyzed period. The higher ratios indicate that the company has had a relatively strong ability to meet its short-term financial obligations, though it may have become slightly more conservative in its approach to liquidity management in more recent quarters.

See also:

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

Additional liquidity measure

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 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

The cash conversion cycle for Freeport-McMoRan Inc has shown variability over the past eight quarters. Generally, the company has taken an average of approximately 160 days to convert its investments in inventory into cash receipts from customers and then into cash payments for raw materials.

In Q4 2023, the cash conversion cycle improved to 122.84 days compared to the previous quarter, indicating that the company managed its inventory, accounts receivable, and accounts payable more efficiently. However, it remains higher than the same quarter in the prior year, indicating a longer collection period for receivables or a longer payment period for payables.

In Q1 2023, the cash conversion cycle increased to 188.89 days, reaching its highest point in the past year. This suggests slower turnover of cash during this period, which may indicate issues with inventory management or delays in collecting receivables.

Overall, Freeport-McMoRan Inc should focus on optimizing its cash conversion cycle by improving inventory turnover, managing receivables efficiently, and optimizing payment terms with suppliers to enhance liquidity and profitability.