Freeport-McMoran Copper & Gold Inc (FCX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.33% | 33.76% | 38.59% | 17.91% | 8.87% |
| Operating profit margin | 27.24% | 30.89% | 36.62% | 17.16% | 7.58% |
| Pretax margin | 18.02% | 25.18% | 38.18% | 10.87% | 1.88% |
| Net profit margin | 8.09% | 15.22% | 28.12% | 4.22% | -1.66% |
The profitability ratios of Freeport-McMoRan Inc have shown fluctuations over the past five years.
- The gross profit margin has decreased consistently from 2019 to 2023, indicating a declining trend in the company's ability to generate profit from its core operations.
- The operating profit margin followed a similar pattern, experiencing a significant drop in 2022 and 2023 compared to the previous years.
- The pretax margin also declined, showing a decreasing trend in the company's profitability before considering taxes.
- The net profit margin has shown variability, with a significant increase in 2022 followed by a notable decrease in 2023, suggesting fluctuations in the company's bottom line profitability.
Overall, the decreasing trend in profitability margins indicates potential challenges in managing costs, generating revenue, and maintaining profitability over the years. Freeport-McMoRan Inc may need to focus on improving operational efficiency and cost management to sustain or enhance its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.86% | 13.77% | 17.42% | 5.78% | 2.67% |
| Return on assets (ROA) | 3.52% | 6.79% | 13.38% | 1.42% | -0.59% |
| Return on total capital | 24.56% | 27.99% | 36.28% | 12.28% | 5.71% |
| Return on equity (ROE) | 11.07% | 22.30% | 45.95% | 5.89% | -2.57% |
Freeport-McMoRan Inc's profitability ratios exhibit fluctuations over the past five years.
Operating return on assets (Operating ROA) has shown a decreasing trend from 17.25% in 2021 to 11.86% in 2023. This ratio indicates that for every dollar of assets, the company generated operating income. The decline may indicate challenges in efficiently utilizing assets to generate operating profits.
Return on assets (ROA) shows a similar trend, decreasing from 8.95% in 2021 to 3.51% in 2023. ROA measures the company's efficiency in generating profits from its assets. The decreasing trend suggests a decline in profitability relative to the company's total assets base.
Return on total capital reflects the company's ability to generate returns for both equity and debt holders, showing a downward trend from 35.39% in 2021 to 23.89% in 2023. This declining trend indicates a decrease in the efficiency of the company's capital utilization and profitability.
Return on equity (ROE) has also shown a varied trend from 30.75% in 2021 to 11.03% in 2023. ROE indicates the return generated for the company's shareholders based on their investments. The declining trend suggests that shareholders' returns have been decreasing over the years.
In conclusion, Freeport-McMoRan Inc's profitability ratios have shown a mixed performance over the years, with some indicators decreasing while others fluctuated. The company may need to focus on improving operational efficiency and capital utilization to enhance overall profitability and returns for its stakeholders.