Freeport-McMoran Copper & Gold Inc (FCX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 1,670,000 | 1,800,000 | 1,749,000 | 1,417,000 | 1,169,000 |
| Total current liabilities | US$ in thousands | 5,815,000 | 6,345,000 | 5,892,000 | 3,417,000 | 3,209,000 |
| Quick ratio | 1.16 | 1.65 | 1.67 | 1.48 | 1.02 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,758,000K
+ $300,000K
+ $1,670,000K)
÷ $5,815,000K
= 1.16
The quick ratio of Freeport-McMoRan Inc has shown some fluctuations over the past five years. The ratio decreased from 1.20 in 2019 to 1.17 in 2023, which suggests a slight decrease in the company's ability to meet its short-term obligations with its most liquid assets.
However, it is worth noting that the quick ratio remained above 1.0 in all years, indicating that the company has had sufficient liquid assets to cover its current liabilities.
The peak quick ratio of 1.75 in 2021 reflects a strong ability to quickly meet short-term financial obligations with liquid assets. The subsequent decrease to 1.58 in 2020 and further to 1.17 in 2023 may indicate a decrease in the company's liquidity position in those years.
Overall, while there have been fluctuations in Freeport-McMoRan Inc's quick ratio over the past five years, the company has generally maintained a healthy liquidity position, ensuring its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023