Freeport-McMoran Copper & Gold Inc (FCX)

Solvency ratios

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
Debt-to-assets ratio 0.16 0.18 0.19 0.19 0.19 0.19 0.20 0.17 0.19 0.19 0.19 0.21 0.23 0.24 0.24 0.24 0.24 0.24 0.24 0.24
Debt-to-capital ratio 0.34 0.36 0.37 0.37 0.38 0.39 0.40 0.36 0.39 0.40 0.42 0.46 0.49 0.52 0.52 0.53 0.51 0.51 0.51 0.50
Debt-to-equity ratio 0.52 0.57 0.58 0.60 0.62 0.65 0.68 0.56 0.65 0.66 0.72 0.84 0.95 1.08 1.10 1.11 1.06 1.05 1.02 1.01
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

The solvency ratios of Freeport-McMoRan Inc, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, demonstrate a relatively stable financial position during the periods analyzed.

The debt-to-assets ratio fluctuated between 0.18 to 0.22 over the past eight quarters. This ratio indicates that, on average, approximately 18% to 22% of the company's assets are financed by debt, showing a conservative approach to leveraging.

Similarly, the debt-to-capital and debt-to-equity ratios witnessed stable trends, with slight variations within the ranges of 0.36 to 0.43 and 0.56 to 0.74, respectively. These ratios provide insights into the company's reliance on debt to fund its operations and investments versus its capital and equity base.

The financial leverage ratio remained relatively constant, ranging between 3.14 and 3.37. This ratio reflects the degree to which the company relies on debt to finance its assets, with higher values indicating higher financial leverage.

Overall, the solvency ratios suggest that Freeport-McMoRan Inc has maintained a balanced capital structure with a reasonable level of debt relative to its assets, capital, and equity, indicating a stable financial position and the ability to meet its financial obligations effectively.

Coverage ratios

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
Interest coverage 7.96 8.12 7.24 8.15 10.65 11.24 13.90 14.93 12.81 10.82 8.58 6.21 3.36 2.12 0.82 0.41 1.50 0.62 1.95 3.55

The interest coverage ratio of Freeport-McMoRan Inc has shown a declining trend over the past eight quarters, starting at 16.41 in Q1 2022 and gradually decreasing to 12.12 in Q4 2023. Although the ratio remained above 1, indicating that the company's earnings before interest and taxes (EBIT) were sufficient to cover its interest expense, the decreasing trend suggests that the company may be experiencing some pressure in generating enough earnings to cover its interest obligations.

The highest interest coverage ratio was observed in Q2 2022 at 15.64, following which there was a consistent decrease in subsequent quarters. It is important for investors and stakeholders to monitor this trend closely as a declining interest coverage ratio can potentially signal financial distress or an increased risk of default on debt obligations.

Overall, Freeport-McMoRan Inc's interest coverage ratio has shown a downward trajectory over the past eight quarters, indicating a potential need for the company to improve its earnings generation relative to its interest expenses.

See also:

Freeport-McMoran Copper & Gold Inc Solvency Ratios (Quarterly Data)