Freeport-McMoran Copper & Gold Inc (FCX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.09% | 31.33% | 33.76% | 38.59% | 17.91% |
| Operating profit margin | 26.97% | 27.24% | 30.89% | 36.62% | 17.16% |
| Pretax margin | 27.13% | 26.28% | 29.48% | 33.53% | 12.66% |
| Net profit margin | 7.42% | 8.06% | 15.22% | 18.85% | 6.01% |
Freeport-McMoran Copper & Gold Inc's profitability ratios have shown a trend of improvement over the years, indicating increased efficiency in generating profits from its operations.
The gross profit margin increased from 17.91% in 2020 to 30.09% in 2024. This suggests that the company has been able to better control its production costs and pricing strategies, resulting in more efficient operations.
Similarly, the operating profit margin has also shown a significant improvement, rising from 17.16% in 2020 to 26.97% in 2024. This indicates that the company has been able to manage its operating expenses effectively while increasing its operating income.
The pretax margin, which reflects the company's profitability before taxes, increased from 12.66% in 2020 to 27.13% in 2024. This demonstrates the company's ability to generate higher profits relative to its total revenue and expenses.
The net profit margin, a key indicator of overall profitability, improved from 6.01% in 2020 to 7.42% in 2024. While the increase is relatively modest compared to other profitability ratios, it still shows that Freeport-McMoran has been able to maintain a healthy level of net income relative to its total revenue.
Overall, the improving trend in all profitability ratios indicates that Freeport-McMoran has been successful in enhancing its operational efficiency and managing its costs effectively, resulting in a stronger bottom line over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.51% | 11.86% | 13.77% | 17.42% | 5.78% |
| Return on assets (ROA) | 3.44% | 3.51% | 6.79% | 8.97% | 2.02% |
| Return on total capital | 37.47% | 39.06% | 46.77% | 59.09% | 23.54% |
| Return on equity (ROE) | 10.74% | 11.03% | 22.30% | 30.80% | 8.38% |
Freeport-McMoran Copper & Gold Inc's profitability ratios exhibit a positive trend over the last five years.
- Operating return on assets (Operating ROA) has shown improvement, increasing from 5.78% in 2020 to 17.42% in 2021, before stabilizing around 13-14% in the following years. This ratio indicates how efficiently the company generates operating income from its assets.
- Return on assets (ROA) experienced significant growth, rising from 2.02% in 2020 to 8.97% in 2021, before gradually declining to around 3.5% by 2024. ROA measures the company's ability to generate profits from its total assets.
- Return on total capital also displayed a strong upward trend, soaring from 23.54% in 2020 to 59.09% in 2021, then moderating to around 37-46% in the subsequent years. This ratio reflects the company's ability to generate returns for both debt and equity investors.
- Return on equity (ROE) improved significantly from 8.38% in 2020 to 30.80% in 2021, but then decreased to 10-22% range in the later years. ROE signifies how well the company uses shareholders' equity to generate profits.
Overall, Freeport-McMoran Copper & Gold Inc has shown positive profitability performance, with varying growth rates across different profitability ratios during the analyzed period.