Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Freeport-McMoRan Inc., solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt Ratios
Debt to equity	0.56	0.68	0.68	0.95	1.06
Debt to equity (including operating lease liability)	0.59	0.70	0.70	0.98	1.08
Debt to capital	0.36	0.41	0.40	0.49	0.51
Debt to capital (including operating lease liability)	0.37	0.41	0.41	0.49	0.52
Debt to assets	0.18	0.21	0.20	0.23	0.24
Debt to assets (including operating lease liability)	0.19	0.21	0.20	0.24	0.25
Financial leverage	3.15	3.28	3.44	4.14	4.39
Coverage Ratios
Interest coverage	12.69	13.05	13.73	4.03	1.51
Fixed charge coverage	11.69	12.13	11.86	3.53	1.42

Based on: 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), 10-K (reporting date: 2019-12-31).

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Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Freeport-McMoRan Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Freeport-McMoRan Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Freeport-McMoRan Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Freeport-McMoRan Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Freeport-McMoRan Inc. debt to assets ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Freeport-McMoRan Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Freeport-McMoRan Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

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Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Freeport-McMoRan Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Freeport-McMoRan Inc. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Freeport-McMoRan Inc., debt to equity calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of debt	766)	1,037)	372)	34)	5)
Long-term debt, less current portion	8,656)	9,583)	9,078)	9,677)	9,821)
Total debt	9,422)	10,620)	9,450)	9,711)	9,826)

Stockholders’ equity	16,693)	15,555)	13,980)	10,174)	9,298)
Solvency Ratio
Debt to equity¹	0.56	0.68	0.68	0.95	1.06
Benchmarks
Debt to Equity, Industry
Materials	0.65	0.67	0.55	0.56	0.52

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 9,422 ÷ 16,693 = 0.56

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Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Freeport-McMoRan Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Freeport-McMoRan Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of debt	766)	1,037)	372)	34)	5)
Long-term debt, less current portion	8,656)	9,583)	9,078)	9,677)	9,821)
Total debt	9,422)	10,620)	9,450)	9,711)	9,826)
Short-term operating lease liabilities	84)	38)	38)	38)	44)
Long-term operating lease liabilities	347)	294)	281)	190)	204)
Total debt (including operating lease liability)	9,853)	10,952)	9,769)	9,939)	10,074)

Stockholders’ equity	16,693)	15,555)	13,980)	10,174)	9,298)
Solvency Ratio
Debt to equity (including operating lease liability)¹	0.59	0.70	0.70	0.98	1.08
Benchmarks
Debt to Equity (including Operating Lease Liability), Industry
Materials	0.70	0.72	0.60	0.61	0.57

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 9,853 ÷ 16,693 = 0.59

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Solvency ratio	Description	The company
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Freeport-McMoRan Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Freeport-McMoRan Inc., debt to capital calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of debt	766)	1,037)	372)	34)	5)
Long-term debt, less current portion	8,656)	9,583)	9,078)	9,677)	9,821)
Total debt	9,422)	10,620)	9,450)	9,711)	9,826)
Stockholders’ equity	16,693)	15,555)	13,980)	10,174)	9,298)
Total capital	26,115)	26,175)	23,430)	19,885)	19,124)
Solvency Ratio
Debt to capital¹	0.36	0.41	0.40	0.49	0.51
Benchmarks
Debt to Capital, Industry
Materials	0.39	0.40	0.36	0.36	0.34

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,422 ÷ 26,115 = 0.36

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Solvency ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Freeport-McMoRan Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Freeport-McMoRan Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of debt	766)	1,037)	372)	34)	5)
Long-term debt, less current portion	8,656)	9,583)	9,078)	9,677)	9,821)
Total debt	9,422)	10,620)	9,450)	9,711)	9,826)
Short-term operating lease liabilities	84)	38)	38)	38)	44)
Long-term operating lease liabilities	347)	294)	281)	190)	204)
Total debt (including operating lease liability)	9,853)	10,952)	9,769)	9,939)	10,074)
Stockholders’ equity	16,693)	15,555)	13,980)	10,174)	9,298)
Total capital (including operating lease liability)	26,546)	26,507)	23,749)	20,113)	19,372)
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.37	0.41	0.41	0.49	0.52
Benchmarks
Debt to Capital (including Operating Lease Liability), Industry
Materials	0.41	0.42	0.38	0.38	0.36

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,853 ÷ 26,546 = 0.37

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Solvency ratio	Description	The company
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Freeport-McMoRan Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Freeport-McMoRan Inc., debt to assets calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of debt	766)	1,037)	372)	34)	5)
Long-term debt, less current portion	8,656)	9,583)	9,078)	9,677)	9,821)
Total debt	9,422)	10,620)	9,450)	9,711)	9,826)

Total assets	52,506)	51,093)	48,022)	42,144)	40,809)
Solvency Ratio
Debt to assets¹	0.18	0.21	0.20	0.23	0.24
Benchmarks
Debt to Assets, Industry
Materials	0.25	0.26	0.22	0.23	0.22

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 9,422 ÷ 52,506 = 0.18

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Solvency ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Freeport-McMoRan Inc. debt to assets ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Freeport-McMoRan Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Current portion of debt	766)	1,037)	372)	34)	5)
Long-term debt, less current portion	8,656)	9,583)	9,078)	9,677)	9,821)
Total debt	9,422)	10,620)	9,450)	9,711)	9,826)
Short-term operating lease liabilities	84)	38)	38)	38)	44)
Long-term operating lease liabilities	347)	294)	281)	190)	204)
Total debt (including operating lease liability)	9,853)	10,952)	9,769)	9,939)	10,074)

Total assets	52,506)	51,093)	48,022)	42,144)	40,809)
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.19	0.21	0.20	0.24	0.25
Benchmarks
Debt to Assets (including Operating Lease Liability), Industry
Materials	0.27	0.28	0.24	0.25	0.24

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,853 ÷ 52,506 = 0.19

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Solvency ratio	Description	The company
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Freeport-McMoRan Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Freeport-McMoRan Inc., financial leverage calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Total assets	52,506)	51,093)	48,022)	42,144)	40,809)
Stockholders’ equity	16,693)	15,555)	13,980)	10,174)	9,298)
Solvency Ratio
Financial leverage¹	3.15	3.28	3.44	4.14	4.39
Benchmarks
Financial Leverage, Industry
Materials	2.60	2.61	2.49	2.47	2.37

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 52,506 ÷ 16,693 = 3.15

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Solvency ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Freeport-McMoRan Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Freeport-McMoRan Inc., interest coverage calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders	1,848)	3,468)	4,306)	599)	(239)
Add: Net income attributable to noncontrolling interest	1,903)	1,011)	1,059)	266)	50)
Less: Net gain from discontinued operations	—)	—)	—)	—)	3)
Add: Income tax expense	2,270)	2,267)	2,299)	944)	510)
Add: Interest expense, net	515)	560)	602)	598)	620)
Earnings before interest and tax (EBIT)	6,536)	7,306)	8,266)	2,407)	938)
Solvency Ratio
Interest coverage¹	12.69	13.05	13.73	4.03	1.51
Benchmarks
Interest Coverage, Industry
Materials	14.00	14.30	15.36	8.03	5.77

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,536 ÷ 515 = 12.69

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Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Freeport-McMoRan Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Freeport-McMoRan Inc., fixed charge coverage calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders	1,848)	3,468)	4,306)	599)	(239)
Add: Net income attributable to noncontrolling interest	1,903)	1,011)	1,059)	266)	50)
Less: Net gain from discontinued operations	—)	—)	—)	—)	3)
Add: Income tax expense	2,270)	2,267)	2,299)	944)	510)
Add: Interest expense, net	515)	560)	602)	598)	620)
Earnings before interest and tax (EBIT)	6,536)	7,306)	8,266)	2,407)	938)
Add: Operating lease costs	48)	46)	104)	116)	134)
Earnings before fixed charges and tax	6,584)	7,352)	8,370)	2,523)	1,072)

Interest expense, net	515)	560)	602)	598)	620)
Operating lease costs	48)	46)	104)	116)	134)
Fixed charges	563)	606)	706)	714)	754)
Solvency Ratio
Fixed charge coverage¹	11.69	12.13	11.86	3.53	1.42
Benchmarks
Fixed Charge Coverage, Industry
Materials	8.89	8.68	8.75	4.84	3.58

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,584 ÷ 563 = 11.69

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Solvency ratio	Description	The company
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Freeport-McMoRan Inc. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Freeport-McMoRan Inc. (NYSE:FCX)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage