Freeport-McMoran Copper & Gold Inc (FCX)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,225,000 | 6,033,000 | 5,503,000 | 5,829,000 | 7,037,000 | 7,812,000 | 9,312,000 | 9,643,000 | 8,366,000 | 7,770,000 | 6,188,000 | 4,442,000 | 2,437,000 | 1,503,000 | 585,000 | 297,000 | 1,091,000 | 632,000 | 1,985,000 | 3,616,000 |
| Long-term debt | US$ in thousands | 8,656,000 | 9,370,000 | 9,458,000 | 9,586,000 | 9,583,000 | 9,658,000 | 10,054,000 | 8,256,000 | 9,078,000 | 8,768,000 | 8,638,000 | 9,153,000 | 9,677,000 | 9,983,000 | 9,824,000 | 9,829,000 | 9,821,000 | 9,915,000 | 9,912,000 | 9,902,000 |
| Total stockholders’ equity | US$ in thousands | 16,693,000 | 16,459,000 | 16,202,000 | 16,057,000 | 15,555,000 | 14,954,000 | 14,889,000 | 14,866,000 | 13,980,000 | 13,353,000 | 12,011,000 | 10,920,000 | 10,174,000 | 9,236,000 | 8,954,000 | 8,855,000 | 9,298,000 | 9,444,000 | 9,709,000 | 9,783,000 |
| Return on total capital | 24.56% | 23.36% | 21.45% | 22.73% | 27.99% | 31.74% | 37.33% | 41.70% | 36.28% | 35.12% | 29.97% | 22.13% | 12.28% | 7.82% | 3.12% | 1.59% | 5.71% | 3.26% | 10.12% | 18.37% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,225,000K ÷ ($8,656,000K + $16,693,000K)
= 24.56%
Freeport-McMoRan Inc's return on total capital has shown a decreasing trend over the last two years, with a downward trajectory from 39.14% in Q1 2022 to 23.89% in Q4 2023. Despite fluctuations, the company has consistently generated returns above 20% in the given period. The lower return in Q4 2023 could indicate a potential decrease in efficiency in utilizing its total capital during that period. Overall, further analysis is recommended to understand the drivers behind the fluctuating trend in return on total capital.
Peer comparison
Dec 31, 2023
Company name
Symbol
Return on total capital
Freeport-McMoran Copper & Gold Inc
FCX
24.56%
Cleveland-Cliffs Inc
CLF
6.14%
MP Materials Corp
MP
-0.87%