Freeport-McMoran Copper & Gold Inc (FCX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,848,000 | 3,468,000 | 6,424,000 | 599,000 | -239,000 |
| Total assets | US$ in thousands | 52,506,000 | 51,093,000 | 48,022,000 | 42,144,000 | 40,809,000 |
| ROA | 3.52% | 6.79% | 13.38% | 1.42% | -0.59% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,848,000K ÷ $52,506,000K
= 3.52%
Based on the provided data, Freeport-McMoRan Inc's return on assets (ROA) has experienced fluctuations over the past five years.
In 2023, the ROA stands at 3.51%, showing a decrease from the previous year's 6.77%. The decline indicates a lower profitability generated from the assets in 2023 compared to 2022.
In 2022, the ROA was 6.77%, showcasing a positive trend as it increased from 8.95% in 2021. This improvement reflects a better utilization of assets to generate profit in 2022.
The highest ROA in the period was recorded in 2021 at 8.95%, demonstrating the most efficient utilization of assets to generate profit compared to the other years.
In 2020, the ROA was 1.41%, indicating a significant drop from the previous year's performance. This decline suggests a decrease in profitability generated from the assets in 2020.
The lowest ROA in the period was seen in 2019 at -0.59%, implying that the company experienced a loss in profitability relative to its assets in that year.
Overall, the analysis of Freeport-McMoRan Inc's ROA over the past five years shows fluctuations, with varying levels of efficiency in generating profit from its assets. The company should further investigate and address the factors contributing to these fluctuations to improve its overall financial performance.
Peer comparison
Dec 31, 2023