Freeport-McMoran Copper & Gold Inc (FCX)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,228,000 | 7,535,000 | 7,063,000 | 6,355,000 | 6,193,000 | 6,104,000 | 5,503,000 | 5,829,000 | 7,037,000 | 7,634,000 | 9,110,000 | 9,447,000 | 8,181,000 | 7,274,000 | 5,740,000 | 4,008,000 | 2,023,000 | 984,000 | 242,000 | -53,000 |
| Interest expense (ttm) | US$ in thousands | 319,000 | 425,000 | 449,000 | 532,000 | 594,000 | 555,000 | 599,000 | 584,000 | 560,000 | 594,000 | 592,000 | 584,000 | 602,000 | 667,000 | 649,000 | 616,000 | 598,000 | 581,000 | 584,000 | 601,000 |
| Interest coverage | 22.66 | 17.73 | 15.73 | 11.95 | 10.43 | 11.00 | 9.19 | 9.98 | 12.57 | 12.85 | 15.39 | 16.18 | 13.59 | 10.91 | 8.84 | 6.51 | 3.38 | 1.69 | 0.41 | -0.09 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,228,000K ÷ $319,000K
= 22.66
Freeport-McMoran Copper & Gold Inc's interest coverage ratio has demonstrated a positive trend over the period analyzed from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
The interest coverage ratio started at a concerning level of -0.09 on March 31, 2020, indicating that the company's operating income was insufficient to cover its interest expenses. However, the ratio improved significantly over time, reaching 22.66 by December 31, 2024. This indicates a strong improvement in the company's ability to meet its interest obligations from its operating earnings.
Overall, the increasing trend in the interest coverage ratio suggests that Freeport-McMoran Copper & Gold Inc's financial health has strengthened over the period, as the company's ability to cover its interest expenses improved significantly. This trend is generally positive and indicates a healthier financial position for the company.
Peer comparison
Dec 31, 2024
See also:
Freeport-McMoran Copper & Gold Inc Interest Coverage (Quarterly Data)