Freeport-McMoran Copper & Gold Inc (FCX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,864,000 | 6,225,000 | 7,037,000 | 8,366,000 | 2,437,000 |
| Total assets | US$ in thousands | 54,848,000 | 52,506,000 | 51,093,000 | 48,022,000 | 42,144,000 |
| Operating ROA | 12.51% | 11.86% | 13.77% | 17.42% | 5.78% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $6,864,000K ÷ $54,848,000K
= 12.51%
Freeport-McMoran Copper & Gold Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In December 2020, the operating ROA was 5.78%, indicating that the company generated 5.78 cents of operating profit for every dollar of assets it held.
Over the subsequent years, Freeport-McMoran's operating ROA experienced growth, reaching 17.42% by December 2021. This significant increase suggests that the company became more efficient in utilizing its assets to generate operating income.
In 2022, the operating ROA decreased to 13.77%, indicating a slight decline in the company's ability to generate operating profit from its assets compared to the previous year. This trend continued in 2023, where the operating ROA further dropped to 11.86%.
By December 2024, Freeport-McMoran's operating ROA improved to 12.51%, although it stayed below the levels observed in 2021 and 2022. This suggests that the company managed to enhance its operating efficiency compared to the two preceding years but has not yet reached the peak performance seen in 2021.
Overall, Freeport-McMoran's operating ROA demonstrates varying performance levels over the analyzed period, highlighting the importance of continuously monitoring and enhancing operational efficiency to maximize returns from assets.
Peer comparison
Dec 31, 2024