Freeport-McMoran Copper & Gold Inc (FCX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,656,000 | 9,583,000 | 9,078,000 | 9,677,000 | 9,821,000 |
| Total assets | US$ in thousands | 52,506,000 | 51,093,000 | 48,022,000 | 42,144,000 | 40,809,000 |
| Debt-to-assets ratio | 0.16 | 0.19 | 0.19 | 0.23 | 0.24 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,656,000K ÷ $52,506,000K
= 0.16
The debt-to-assets ratio of Freeport-McMoRan Inc has shown a decreasing trend over the past five years, indicating an improving financial position in terms of leverage. The ratio decreased from 0.24 in 2019 to 0.18 in 2023.
This reduction suggests that the company has been able to decrease its reliance on debt financing relative to its total assets, which can be viewed positively by investors and creditors. A lower debt-to-assets ratio signifies a greater proportion of assets financed by equity rather than debt, reducing the company's financial risk.
However, it is essential to consider the industry norms and the company's specific circumstances when evaluating this ratio. While the decreasing trend is generally favorable, a thorough analysis of Freeport-McMoRan's overall financial health, profitability, and future growth prospects should be conducted to assess the significance of this trend in the broader context of its operations.
Peer comparison
Dec 31, 2023