Freeport-McMoran Copper & Gold Inc (FCX)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,225,000 | 7,037,000 | 8,366,000 | 2,437,000 | 1,091,000 |
| Revenue | US$ in thousands | 22,855,000 | 22,780,000 | 22,845,000 | 14,198,000 | 14,402,000 |
| Operating profit margin | 27.24% | 30.89% | 36.62% | 17.16% | 7.58% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $6,225,000K ÷ $22,855,000K
= 27.24%
Freeport-McMoRan Inc's operating profit margin has shown fluctuations over the past five years. In 2023, the operating profit margin decreased to 27.24% from 30.88% in 2022. Despite this decrease, the company's operating profit margin remains relatively strong compared to previous years.
In 2023, the operating profit margin of 27.24% indicates that the company is able to generate approximately $0.27 in operating income for every dollar of sales revenue. The decreasing trend in the operating profit margin from 2022 to 2023 could suggest factors such as changes in costs, pricing strategies, or operational efficiencies impacting profitability.
Comparing the operating profit margin to the historical data, it is evident that Freeport-McMoRan Inc has shown significant improvement from 2019 to 2023, with a notable increase from a low of 4.68% in 2019 to 27.24% in 2023. This overall trend indicates a positive trajectory in the company's ability to generate profits from its core operations over the past five years. However, it is important for investors and stakeholders to monitor the company's operating profit margin and assess the underlying reasons behind fluctuations to gauge the company's financial health and performance.
Peer comparison
Dec 31, 2023