Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Freeport-McMoRan Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Freeport-McMoRan Inc. inventory turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Freeport-McMoRan Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Freeport-McMoRan Inc. payables turnover ratio increased from 2022 to 2023 and from 2023 to 2024. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Freeport-McMoRan Inc. working capital turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Freeport-McMoRan Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Freeport-McMoRan Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Freeport-McMoRan Inc. operating cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Freeport-McMoRan Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Inventory Turnover
Freeport-McMoRan Inc., inventory turnover calculation, comparison to benchmarks
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 2024 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Freeport-McMoRan Inc. inventory turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Receivables Turnover
Freeport-McMoRan Inc., receivables turnover calculation, comparison to benchmarks
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 2024 Calculation
Receivables turnover = Revenues ÷ Trade accounts receivable
= ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Freeport-McMoRan Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
Payables Turnover
Freeport-McMoRan Inc., payables turnover calculation, comparison to benchmarks
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 2024 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Freeport-McMoRan Inc. payables turnover ratio increased from 2022 to 2023 and from 2023 to 2024. |
Working Capital Turnover
Freeport-McMoRan Inc., working capital turnover calculation, comparison to benchmarks
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 2024 Calculation
Working capital turnover = Revenues ÷ Working capital
= ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Freeport-McMoRan Inc. working capital turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
Average Inventory Processing Period
Freeport-McMoRan Inc., average inventory processing period calculation, comparison to benchmarks
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 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Freeport-McMoRan Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Average Receivable Collection Period
Freeport-McMoRan Inc., average receivable collection period calculation, comparison to benchmarks
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 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Freeport-McMoRan Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024. |
Operating Cycle
Freeport-McMoRan Inc., operating cycle calculation, comparison to benchmarks
No. days
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 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Freeport-McMoRan Inc. operating cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Average Payables Payment Period
Freeport-McMoRan Inc., average payables payment period calculation, comparison to benchmarks
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 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Freeport-McMoRan Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
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 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Freeport-McMoRan Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |