Freeport-McMoran Copper & Gold Inc (FCX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 16,693,000 | 15,555,000 | 13,980,000 | 10,174,000 | 9,298,000 |
| Debt-to-capital ratio | 0.34 | 0.38 | 0.39 | 0.49 | 0.51 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,656,000K ÷ ($8,656,000K + $16,693,000K)
= 0.34
The debt-to-capital ratio of Freeport-McMoRan Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's financial leverage and capital structure.
As of December 31, 2023, the company's debt-to-capital ratio stood at 0.36, down from 0.41 in the previous year. This decrease suggests that Freeport-McMoRan has reduced its reliance on debt financing relative to its total capital, which may indicate a stronger financial position and reduced financial risk.
Comparing to the ratios from 2021, 2020, and 2019, the decreasing trend is evident. In 2021, the ratio was 0.40, in 2020 it was 0.49, and in 2019 it stood at 0.51. This consistent decline in the debt-to-capital ratio reflects the company's efforts to manage its debt levels and optimize its capital structure over the years.
Overall, the decreasing trend in Freeport-McMoRan's debt-to-capital ratio indicates a positive financial performance in terms of its debt management and capital allocation strategies. Investors and stakeholders may view this trend favorably as it suggests a more sustainable financial position for the company.
Peer comparison
Dec 31, 2023