Stock Analysis on Net

Freeport-McMoRan Inc. (NYSE:FCX)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Freeport-McMoRan Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 2.61 2.59 2.91 3.12 2.99
Receivables turnover 44.04 18.90 17.05 19.56 15.92
Payables turnover 6.38 6.36 5.59 6.89 7.91
Working capital turnover 3.26 2.77 2.46 2.56 2.41
Average No. Days
Average inventory processing period 140 141 125 117 122
Add: Average receivable collection period 8 19 21 19 23
Operating cycle 148 160 146 136 145
Less: Average payables payment period 57 57 65 53 46
Cash conversion cycle 91 103 81 83 99

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cost of sales 17,795 15,695 15,089 14,030 11,655
Inventories 6,808 6,060 5,180 4,497 3,893
Short-term Activity Ratio
Inventory turnover1 2.61 2.59 2.91 3.12 2.99
Benchmarks
Inventory Turnover, Industry
Materials 4.24 4.33 4.84 5.27 4.94

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

Freeport-McMoRan Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Revenues 25,455 22,855 22,780 22,845 14,198
Trade accounts receivable 578 1,209 1,336 1,168 892
Short-term Activity Ratio
Receivables turnover1 44.04 18.90 17.05 19.56 15.92
Benchmarks
Receivables Turnover, Industry
Materials 10.75 9.38 9.26 9.18 8.38

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

Freeport-McMoRan Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cost of sales 17,795 15,695 15,089 14,030 11,655
Accounts payable 2,789 2,466 2,701 2,035 1,473
Short-term Activity Ratio
Payables turnover1 6.38 6.36 5.59 6.89 7.91
Benchmarks
Payables Turnover, Industry
Materials 6.20 5.83 5.82 5.41 5.49

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

Freeport-McMoRan Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current assets 13,296 14,065 15,613 14,830 9,303
Less: Current liabilities 5,496 5,815 6,345 5,892 3,417
Working capital 7,800 8,250 9,268 8,938 5,886
 
Revenues 25,455 22,855 22,780 22,845 14,198
Short-term Activity Ratio
Working capital turnover1 3.26 2.77 2.46 2.56 2.41
Benchmarks
Working Capital Turnover, Industry
Materials 17.02 19.50 13.54 15.37 19.50

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

Freeport-McMoRan Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 2.61 2.59 2.91 3.12 2.99
Short-term Activity Ratio (no. days)
Average inventory processing period1 140 141 125 117 122
Benchmarks (no. days)
Average Inventory Processing Period, Industry
Materials 86 84 75 69 74

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

Freeport-McMoRan Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 44.04 18.90 17.05 19.56 15.92
Short-term Activity Ratio (no. days)
Average receivable collection period1 8 19 21 19 23
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Materials 34 39 39 40 44

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

Freeport-McMoRan Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 140 141 125 117 122
Average receivable collection period 8 19 21 19 23
Short-term Activity Ratio
Operating cycle1 148 160 146 136 145
Benchmarks
Operating Cycle, Industry
Materials 120 123 114 109 118

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

Freeport-McMoRan Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 6.38 6.36 5.59 6.89 7.91
Short-term Activity Ratio (no. days)
Average payables payment period1 57 57 65 53 46
Benchmarks (no. days)
Average Payables Payment Period, Industry
Materials 59 63 63 67 66

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

Freeport-McMoRan Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 140 141 125 117 122
Average receivable collection period 8 19 21 19 23
Average payables payment period 57 57 65 53 46
Short-term Activity Ratio
Cash conversion cycle1 91 103 81 83 99
Benchmarks
Cash Conversion Cycle, Industry
Materials 61 60 51 42 52

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 + 857 = 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.