Freeport-McMoran Copper & Gold Inc (FCX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 52,506,000 | 51,093,000 | 48,022,000 | 42,144,000 | 40,809,000 |
| Operating ROA | 11.86% | 13.77% | 17.42% | 5.78% | 2.67% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $6,225,000K ÷ $52,506,000K
= 11.86%
Freeport-McMoRan Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA stood at 11.86%, a decrease from the previous year's figure of 13.77%. Despite the decline, the company's operational efficiency remains relatively sound compared to earlier years.
The operating ROA was notably higher in 2021 at 17.25%, reflecting a strong performance in utilizing its assets to generate operating income. This represented a significant improvement from 2020 when the operating ROA was 4.66%, indicating potential challenges faced by the company in that year.
Furthermore, in 2019, the operating ROA was 1.65%, showing a gradual but positive trend in the company's operational efficiency over the years.
Overall, the fluctuation in Freeport-McMoRan Inc's operating ROA indicates varying levels of effectiveness in generating operating income from its assets. It would be beneficial for stakeholders to further investigate the factors contributing to these fluctuations to gain a deeper understanding of the company's operational performance.
Peer comparison
Dec 31, 2023