Freeport-McMoran Copper & Gold Inc (FCX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.12 | 3.16 | 3.14 | 3.19 | 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 | 4.49 | 4.49 | 4.54 |
Based on the data provided, Freeport-McMoran Copper & Gold Inc has consistently maintained a strong solvency position as indicated by its low debt ratios.
1. Debt-to-assets ratio: The company's debt-to-assets ratio has been consistently 0.00, indicating that Freeport-McMoran has had no debt relative to its total assets. This is a positive sign of financial strength and stability.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has remained at 0.00 throughout the reported periods. This ratio shows the proportion of a company's capital that is financed through debt, and in this case, the company has not relied on debt financing for its operations.
3. Debt-to-equity ratio: The debt-to-equity ratio also consistently shows 0.00, suggesting that the company has not used debt to finance its operations in relation to its equity. This indicates a lower financial risk and a healthy capital structure.
4. Financial leverage ratio: The financial leverage ratio provides insight into the company's ability to meet its financial obligations. Freeport-McMoran's financial leverage ratio has been decreasing over the periods, from 4.54 in March 2020 to 3.12 in December 2024. A lower financial leverage ratio indicates a reduced reliance on debt financing and a stronger equity base to support the company's operations.
In conclusion, based on the solvency ratios analyzed, Freeport-McMoran Copper & Gold Inc demonstrates a solid financial position with low debt levels, minimal financial leverage, and a healthy balance between debt and equity financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating income.
Analyzing Freeport-McMoran Copper & Gold Inc's interest coverage over the past few years, we can see a fluctuating trend. As of December 31, 2024, the interest coverage ratio stands at 22.66, the highest in the provided data set, indicating a strong ability to cover interest payments with operating income.
The trend shows an overall improvement in the interest coverage ratio over the last few periods, with some fluctuations along the way. Freeport-McMoran's interest coverage ratio has generally been increasing from negative levels in March 2020 to a peak in December 2024.
The company's interest coverage ratio has shown an improving trend since facing a negative ratio in March 2020, possibly due to enhanced profitability and operational efficiency. This improvement suggests that the company's ability to meet interest obligations has strengthened over time, reflecting positive financial performance and effective management of debt obligations.
Investors and creditors are likely to view the increasing interest coverage ratio positively, as it indicates a reduced risk of default on debt payments and a healthier financial position for Freeport-McMoran Copper & Gold Inc.
See also:
Freeport-McMoran Copper & Gold Inc Solvency Ratios (Quarterly Data)