Freeport-McMoran Copper & Gold Inc (FCX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.12 | 3.15 | 3.28 | 3.44 | 4.14 |
Freeport-McMoran Copper & Gold Inc has consistently maintained a strong solvency position, as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 across the years 2020 to 2024. This signifies that the company's total debt is negligible in relation to its total assets, capital, and equity, reflecting a low level of financial risk.
Furthermore, the financial leverage ratio has shown a declining trend from 4.14 in 2020 to 3.12 in 2024. The decreasing financial leverage ratio indicates that the company is relying less on debt financing in its capital structure over the years, which can enhance its financial stability and decrease the potential risks associated with high leverage.
Overall, the consistently low debt ratios and decreasing financial leverage ratio highlight Freeport-McMoran's prudent management of its debt levels and commitment to maintaining a strong solvency position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 20.65 | 12.66 | 12.99 | 13.72 | 4.01 |
The interest coverage of Freeport-McMoran Copper & Gold Inc has shown a positive trend over the past five years. In December 31, 2020, the interest coverage was at 4.01, indicating that the company's operating income was able to cover its interest expenses 4.01 times.
Thereafter, in December 31, 2021, the interest coverage significantly improved to 13.72, suggesting a strong increase in the company's ability to cover its interest payments. This positive trend continued into the following years as well, with interest coverage ratios of 12.99 in December 31, 2022, 12.66 in December 31, 2023, and 20.65 in December 31, 2024.
Overall, the increasing interest coverage ratios demonstrate that Freeport-McMoran Copper & Gold Inc's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses, indicating good financial health and a reduced risk of default on debt obligations.