Freeport-McMoran Copper & Gold Inc (FCX)
Quick 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 | 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 |
| Receivables | US$ in thousands | 1,670,000 | 1,280,000 | 1,092,000 | 1,684,000 | 1,800,000 | 1,329,000 | 1,412,000 | 1,981,000 | 1,749,000 | 1,522,000 | 1,678,000 | 1,770,000 | 1,417,000 | 1,357,000 | 1,363,000 | 1,106,000 | 1,169,000 | 994,000 | 970,000 | 1,191,000 |
| 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 |
| 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 |
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 fluctuation over the past eight quarters. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets (such as cash, marketable securities, and accounts receivable) without relying on the sale of inventory.
In Q1 2022, the quick ratio was 1.68, indicating that the company had $1.68 in liquid assets available to cover $1 of short-term liabilities. The ratio then increased to 1.94 in Q2 2022, suggesting an improvement in the company's ability to meet its short-term obligations.
However, the quick ratio started to decline in the subsequent quarters, reaching a low of 1.17 in Q4 2023. This may raise concerns about the company's liquidity position and its ability to cover short-term liabilities without relying on inventory sales.
Overall, the trend in Freeport-McMoRan Inc's quick ratio indicates some variability in its short-term liquidity position. Further analysis of the company's liquidity management practices and operating cash flows may be necessary to fully assess its financial health.
Peer comparison
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Quick Ratio (Quarterly Data)