Stock Analysis on Net

Freeport-McMoRan Inc. (NYSE:FCX)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Freeport-McMoRan Inc., adjustments to financial statements

US$ in millions

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 54,848 52,506 51,093 48,022 42,144
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 54,848 52,506 51,093 48,022 42,144
Adjustment to Total Debt
Total debt (as reported) 8,948 9,422 10,620 9,450 9,711
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Short-term operating lease liabilities 98 84 38 38 38
Add: Long-term operating lease liabilities 692 347 294 281 190
Total debt (adjusted) 9,738 9,853 10,952 9,769 9,939

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1, 2 Equal to total present value of future operating lease payments.


Freeport-McMoRan Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Freeport-McMoRan Inc., adjusted financial ratios

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 0.46 0.44 0.45 0.48 0.34
Adjusted total asset turnover 0.46 0.44 0.45 0.48 0.34
Debt to Equity2
Reported debt to equity 0.51 0.56 0.68 0.68 0.95
Adjusted debt to equity 0.55 0.59 0.70 0.70 0.98
Return on Assets3 (ROA)
Reported ROA 3.44% 3.52% 6.79% 8.97% 1.42%
Adjusted ROA 3.44% 3.52% 6.79% 8.97% 1.42%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Freeport-McMoRan Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Freeport-McMoRan Inc. adjusted debt to equity ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Freeport-McMoRan Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Freeport-McMoRan Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues 25,455 22,855 22,780 22,845 14,198
Total assets 54,848 52,506 51,093 48,022 42,144
Activity Ratio
Total asset turnover1 0.46 0.44 0.45 0.48 0.34
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 25,455 22,855 22,780 22,845 14,198
Adjusted total assets 54,848 52,506 51,093 48,022 42,144
Activity Ratio
Adjusted total asset turnover2 0.46 0.44 0.45 0.48 0.34

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 25,455 ÷ 54,848 = 0.46

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 25,455 ÷ 54,848 = 0.46

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Freeport-McMoRan Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt 8,948 9,422 10,620 9,450 9,711
Stockholders’ equity 17,581 16,693 15,555 13,980 10,174
Solvency Ratio
Debt to equity1 0.51 0.56 0.68 0.68 0.95
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 9,738 9,853 10,952 9,769 9,939
Stockholders’ equity 17,581 16,693 15,555 13,980 10,174
Solvency Ratio
Adjusted debt to equity2 0.55 0.59 0.70 0.70 0.98

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 8,948 ÷ 17,581 = 0.51

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 9,738 ÷ 17,581 = 0.55

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Freeport-McMoRan Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to common stockholders 1,889 1,848 3,468 4,306 599
Total assets 54,848 52,506 51,093 48,022 42,144
Profitability Ratio
ROA1 3.44% 3.52% 6.79% 8.97% 1.42%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to common stockholders 1,889 1,848 3,468 4,306 599
Adjusted total assets 54,848 52,506 51,093 48,022 42,144
Profitability Ratio
Adjusted ROA2 3.44% 3.52% 6.79% 8.97% 1.42%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income attributable to common stockholders ÷ Total assets
= 100 × 1,889 ÷ 54,848 = 3.44%

2 Adjusted ROA = 100 × Net income attributable to common stockholders ÷ Adjusted total assets
= 100 × 1,889 ÷ 54,848 = 3.44%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Freeport-McMoRan Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.