Freeport-McMoran Copper & Gold Inc (FCX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,506,000 | 51,093,000 | 48,022,000 | 42,144,000 | 40,809,000 |
| Total stockholders’ equity | US$ in thousands | 16,693,000 | 15,555,000 | 13,980,000 | 10,174,000 | 9,298,000 |
| Financial leverage ratio | 3.15 | 3.28 | 3.44 | 4.14 | 4.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,506,000K ÷ $16,693,000K
= 3.15
The financial leverage ratio of Freeport-McMoRan Inc has shown a decreasing trend from 2019 to 2023. The ratio has declined from 4.39 in 2019 to 3.15 in 2023. This suggests that the company has been reducing its reliance on debt to finance its operations over the years. A decreasing financial leverage ratio indicates a lower level of financial risk, as the company is using less debt in its capital structure. This trend could be a positive sign for investors and creditors as it may imply improved financial stability and sustainability. However, it is important to consider the specific reasons behind this trend and whether it aligns with the company's strategic goals and industry norms.
Peer comparison
Dec 31, 2023