Freeport-McMoran Copper & Gold Inc (FCX)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,506,000 | 51,648,000 | 50,907,000 | 50,909,000 | 51,093,000 | 49,927,000 | 50,113,000 | 48,832,000 | 48,022,000 | 46,917,000 | 45,436,000 | 43,643,000 | 42,144,000 | 41,099,000 | 40,230,000 | 40,219,000 | 40,809,000 | 40,943,000 | 41,086,000 | 41,059,000 |
| 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 |
| Financial leverage ratio | 3.15 | 3.14 | 3.14 | 3.17 | 3.28 | 3.34 | 3.37 | 3.28 | 3.44 | 3.51 | 3.78 | 4.00 | 4.14 | 4.45 | 4.49 | 4.54 | 4.39 | 4.34 | 4.23 | 4.20 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,506,000K ÷ $16,693,000K
= 3.15
Freeport-McMoRan Inc's financial leverage ratio has exhibited a varying trend over the past eight quarters. The financial leverage ratio measures the extent to which the company relies on debt to finance its operations, with a higher ratio indicating higher financial leverage.
In Q4 2023, the financial leverage ratio stood at 3.15, showing a slight decrease from the previous quarter's 3.14. This suggests that the company may have reduced its reliance on debt for financing its business activities. However, compared to the same quarter in the previous year (Q4 2022), the ratio has decreased significantly from 3.28, indicating a potentially more conservative approach to debt management.
The overall trend over the last eight quarters shows a gradual decline in the financial leverage ratio, with some fluctuations along the way. This downward trend could indicate that Freeport-McMoRan Inc is making efforts to reduce its financial risk by decreasing its dependence on debt financing. However, the ratio still remains above 3, indicating that the company continues to have a significant level of financial leverage.
It is important for stakeholders to closely monitor this ratio in conjunction with other financial metrics to assess Freeport-McMoRan Inc's overall financial health and risk profile.
Peer comparison
Dec 31, 2023
See also:
Freeport-McMoran Copper & Gold Inc Financial Leverage (Quarterly Data)