Freeport-McMoran Copper & Gold Inc (FCX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 16,693,000 | 15,555,000 | 13,980,000 | 10,174,000 | 9,298,000 |
| ROE | 11.07% | 22.30% | 45.95% | 5.89% | -2.57% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,848,000K ÷ $16,693,000K
= 11.07%
Freeport-McMoRan Inc's return on equity (ROE) has displayed significant fluctuations over the past five years. In 2023, the ROE stood at 11.03%, marking a decrease from the previous year's 22.25%. This decline suggests a reduction in the company's efficiency in generating profits from its shareholders' equity.
The ROE peaked at 30.75% in 2021, indicating a strong performance in that year. However, this was followed by a notable drop to 5.86% in 2020, highlighting a sudden decrease in profitability relative to shareholder equity.
Moreover, in 2019, Freeport-McMoRan Inc reported a negative ROE of -2.57%, signifying a loss in shareholder value and indicating potential financial distress during that period.
Overall, the fluctuating ROE of Freeport-McMoRan Inc over the past five years reflects varying levels of profitability and efficiency in utilizing shareholder equity. Further analysis of the company's operations and financial strategies would be necessary to understand the factors driving these fluctuations and to assess the company's long-term performance.
Peer comparison
Dec 31, 2023