Freeport-McMoRan Inc. (NYSE:FCX)

Return on Assets (ROA)

The return on assets showed a progressive increase from 1.42% in March 2020 to a peak of 10.47% in June 2022. After reaching this high point, ROA experienced a steady decline over the subsequent periods, dropping to 3.41% by June 2025. This trend indicates an initial strengthening in the company's asset efficiency, followed by a noticeable reduction in profitability relative to assets in more recent quarters.

Financial Leverage

Financial leverage exhibited a consistent downward trend from 4.54 in the earliest available quarter (March 2020) to approximately 3.1 by June 2025. This gradual decrease suggests a move towards a more conservative capital structure with reduced reliance on debt financing over time. Minor fluctuations are observed around the 3.1 to 3.2 level in the final periods, indicating stabilization at this lower leverage ratio.

Return on Equity (ROE)

Return on equity rose significantly from 5.89% in March 2020 to a peak of 34.41% in June 2022, reflecting strong shareholder returns during this period. Post-peak, ROE declined steadily, reaching around 10.57% by June 2025. The trajectory mirrors the pattern seen in ROA but with higher volatility and magnitude, consistent with the higher financial leverage in earlier periods. This pattern may suggest that initial improvements in operational profitability and leverage contributed to elevated equity returns, which later moderated as leverage decreased and profitability normalized.

The financial data reveals several notable trends regarding profitability, efficiency, and leverage over the observed periods.

Net Profit Margin

The net profit margin shows a marked improvement beginning in early 2021, rising from 4.22% in March 2021 to a peak of 20.79% in June 2022. This increase reflects enhanced profitability during this period. However, a decline follows from mid-2022 onward, reaching around 7.11% by June 2025, indicating a reduction in profit relative to revenue despite remaining positive.

Asset Turnover

The asset turnover ratio demonstrates gradual growth from 0.34 in March 2021 to a peak near 0.50 in June 2022, suggesting improved efficiency in generating revenue from assets. After this peak, the ratio stabilizes around 0.44 to 0.46, indicating a relatively consistent usage of assets for revenue generation over the later periods.

Financial Leverage

Financial leverage steadily decreases from 4.54 in March 2020 to approximately 3.1 by mid-to-late 2025. This indicates a reduction in reliance on debt financing relative to equity, reflecting a more conservative capital structure or deleveraging efforts over time.

Return on Equity (ROE)

ROE shows a significant upward trend early in the timeline, increasing from 5.89% in March 2021 to a high of 34.41% in June 2022. Following this peak, ROE declines considerably but remains above 10% from late 2023 to mid-2025. This pattern corresponds with the changes in net profit margin and asset turnover, reflecting fluctuations in overall profitability and operational efficiency.

In summary, the company experiences strong profitability and efficiency improvements up to mid-2022, accompanied by reduced financial leverage. Post-2022, profitability metrics decline but maintain moderate levels, while asset turnover remains stable and leverage stays relatively low compared to the earlier periods. These trends indicate a period of growth followed by stabilization and some moderation in financial performance.

The financial data reveals several key trends in the company's performance over the analyzed quarters. The tax burden ratio shows a generally decreasing trend starting from around 0.63 at the end of 2020, gradually declining to approximately 0.41 by mid-2025. This indicates an improvement in tax efficiency or changes in tax rates or policies affecting the company.

The interest burden ratio reflects a consistent upward trajectory, rising from 0.72 in early 2020 to about 0.94 by mid-2025. This suggests the company's ability to better manage interest expenses relative to its earnings before interest and taxes, which may indicate improved debt servicing capacity or reduced interest costs.

The EBIT margin percentage exhibits variability, initially increasing substantially from about 15% at the start of 2020 to a peak exceeding 34% during mid-2021. Subsequently, it declines gradually, stabilizing between 18% and 20% from late 2022 through mid-2025. This pattern points to strong operational profitability growth followed by normalization to a more sustainable margin level.

Asset turnover demonstrates a steady increase from 0.34 in early 2020 to around 0.50 by mid-2021, followed by minor fluctuations maintaining levels close to 0.44 to 0.46 through mid-2025. The trend indicates improved efficiency in using assets to generate revenue, although recent periods reflect a stabilization in asset utilization.

Financial leverage trends downward from values above 4.5 in early 2020 to approximately 3.1 by mid-2025. The decline suggests a reduction in reliance on debt financing or enhanced equity base, implying a strengthening balance sheet and potentially lower financial risk.

Return on equity (ROE) follows a notable pattern, rising sharply from under 6% in early 2020 to a peak above 34% by mid-2021. Following this peak, ROE declines steadily to values near 10% by mid-2025. This trajectory signals a phase of high profitability and efficient equity use, followed by a period of normalization that may reflect changes in profitability, leverage, or operational factors.

Tax Burden

Decreasing trend from around 0.63 to approximately 0.41 indicates improved tax efficiency.

Interest Burden

Consistent increase from 0.72 to 0.94 suggests better interest expense management.

EBIT Margin

Sharp increase to a peak above 34%, followed by a gradual decline stabilizing near 18-20%, showing strong profitability growth with subsequent normalization.

Asset Turnover

Steady rise to 0.50, then stabilization around 0.44-0.46, reflecting improved and then stable asset utilization.

Financial Leverage

Steady decrease from approximately 4.5 to 3.1 implies reduced debt dependence and enhanced balance sheet strength.

Return on Equity (ROE)

Significant increase peaking over 34%, then declining to about 10%, indicating a high-profitability period followed by normalization.

Net Profit Margin

The net profit margin shows a clear upward trend beginning in the first quarter of 2021, rising from 4.22% in March 2021 to a peak of 20.79% in June 2022. Following this peak, the margin declines steadily, falling to 9.5% by the end of 2023. From 2024 onward, the margin stabilizes somewhat, fluctuating around 7% to 8% through June 2025. This pattern suggests an initial period of improving profitability, reaching a high point, followed by a gradual normalization at a lower but steady profitability level.

Asset Turnover

Asset turnover has generally improved from early 2021 through mid-2022, increasing from 0.34 in March 2021 to a high of 0.5 in June 2022. After this peak, the ratio experiences a slight decline and then maintains a relatively stable level between 0.44 and 0.46 through mid-2025. The trend indicates an initial enhancement in the efficiency with which assets are used to generate revenue, followed by a period of stabilization without significant growth or decline.

Return on Assets (ROA)

Return on assets mirrors the patterns seen in net profit margin, starting at 1.42% in March 2021 and rising sharply to a peak of 10.47% in June 2022. Subsequently, ROA decreases steadily, reaching a low of approximately 3.06% in June 2024. The measure shows minor fluctuations thereafter but remains around 3% to 3.5% through mid-2025. This indicates that the company’s ability to generate profit from its assets improved substantially until mid-2022 and then declined to a more moderate and stable rate.

The financial data reveals several key trends in the company’s profitability, efficiency, and burden ratios over the observed periods. The analysis focuses on the Tax Burden, Interest Burden, EBIT Margin, Asset Turnover, and Return on Assets (ROA) metrics from early 2020 through mid-2025.

Tax Burden

The Tax Burden ratio starts at 0.39 in the first quarter of 2021 and generally increases through the end of 2021, peaking at 0.65. From 2022 onward, a gradual decline occurs, reaching approximately 0.41 by mid-2025. This declining trend in recent years suggests a decreasing proportion of earnings lost to taxes, potentially indicating improved tax efficiency or changes in tax strategy.

Interest Burden

The Interest Burden ratio exhibits a steady upward trajectory from 0.72 in early 2021 to 0.94 by mid-2025. This consistent increase implies improved ability to cover interest expenses relative to earnings before interest and taxes, indicating potentially lower interest costs or stronger operating income available to service debt over time.

EBIT Margin

The EBIT Margin shows marked growth from 15.08% in Q1 2021 to a peak of 34.06% in Q2 2022, reflecting a period of increasing operational profitability. However, after mid-2022, the margin trending downward to approximately 18.69% by late 2025 suggests rising costs or pricing pressures impacting earnings before interest and taxes. Despite this decline, the margin remains higher than at the start of the period.

Asset Turnover

Asset Turnover improves steadily from 0.34 in early 2021 to around 0.50 by mid-2022, indicating enhanced efficiency in utilizing assets to generate revenue. Post mid-2022, the ratio stabilizes in the 0.44 to 0.46 range, signifying a plateau in asset utilization efficiency in the more recent periods.

Return on Assets (ROA)

ROA rises significantly from 1.42% in Q1 2021 to peak at 10.47% by mid-2022, denoting a substantial increase in overall profitability relative to total assets. Subsequent quarters show a consistent decline, leveling off between 3.16% and 3.62% through mid-2025. The decrease corresponds with the reduction in EBIT Margin and suggests diminished returns generated by the asset base in recent periods.

Overall, the data indicate a phase of improving profitability and efficiency through mid-2022, followed by a period of stabilization or moderate decline in key financial performance metrics. The improved Interest Burden ratio reflects strengthening earnings capacity relative to interest obligations. The weakening Tax Burden and EBIT Margin post-peak suggest cost pressures or changing tax conditions are affecting net profitability. The stable Asset Turnover and lowered ROA in later periods imply that, despite efficient asset use, profitability on asset investment has moderated compared to earlier years.

Tax Burden

The tax burden ratio exhibits an increasing trend starting from 0.39 in March 2021, peaking around 0.66 in mid-2022. Following this peak, the ratio demonstrates a gradual decline, reaching approximately 0.41 by the second quarter of 2025. This pattern indicates an initial rise in the proportion of pre-tax income paid as taxes, followed by a reduction in the tax impact on earnings over time.

Interest Burden

The interest burden ratio shows a steady upward trajectory from about 0.72 in March 2021 to around 0.94 by mid-2025. This increasing trend suggests an improvement in the company’s earnings before interest and taxes relative to earnings before taxes and interest expenses, indicating a decreasing interest expense burden over the reported periods.

EBIT Margin

Starting at 15.08% in March 2021, the EBIT margin increases notably to a peak of 34.06% by mid-2022. Thereafter, a consistent downward trend is observed, declining to about 18.69% by the second quarter of 2025. This movement reflects a period of enhancing operational profitability reaching a high mid-2022, followed by a deterioration in operating efficiency or increased operating costs thereafter.

Net Profit Margin

The net profit margin follows a similar pattern to the EBIT margin, beginning at 4.22% in March 2021 and rising to a high of 20.79% mid-2022. Following this peak, it declines steadily to approximately 7.45% by mid-2025. This trend indicates a significant improvement in overall profitability up to mid-2022, after which the company experienced pressures reducing net profitability, likely driven by a combination of operational and non-operational factors.