Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
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
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
= 17,795 ÷ 6,808 = 2.61
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
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
= 25,455 ÷ 578 = 44.04
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
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
= 17,795 ÷ 2,789 = 6.38
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
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
= 25,455 ÷ 7,800 = 3.26
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
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 ÷ 2.61 = 140
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
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 ÷ 44.04 = 8
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
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
= 140 + 8 = 148
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
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 ÷ 6.38 = 57
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
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
= 140 + 8 – 57 = 91
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. |