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)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

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

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Turnover Ratios
Inventory turnover	2.59	2.91	3.12	2.99	3.22
Receivables turnover	18.90	17.05	19.56	15.92	19.44
Payables turnover	6.36	5.59	6.89	7.91	7.92
Working capital turnover	2.77	2.46	2.56	2.41	3.06
Average No. Days
Average inventory processing period	141	125	117	122	113
Add: Average receivable collection period	19	21	19	23	19
Operating cycle	160	146	136	145	132
Less: Average payables payment period	57	65	53	46	46
Cash conversion cycle	103	81	83	99	86

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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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 2021 to 2022 and from 2022 to 2023.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Freeport-McMoRan Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Freeport-McMoRan Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Freeport-McMoRan Inc. working capital turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

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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 2021 to 2022 and from 2022 to 2023.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Freeport-McMoRan Inc. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.
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.	Freeport-McMoRan Inc. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Freeport-McMoRan Inc., inventory turnover 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)
Cost of sales	15,695)	15,089)	14,030)	11,655)	13,105)
Inventories	6,060)	5,180)	4,497)	3,893)	4,073)
Short-term Activity Ratio
Inventory turnover¹	2.59	2.91	3.12	2.99	3.22
Benchmarks
Inventory Turnover, Industry
Materials	4.06	4.83	5.07	4.81	5.16

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
Inventory turnover = Cost of sales ÷ Inventories
= 15,695 ÷ 6,060 = 2.59

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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 2021 to 2022 and from 2022 to 2023.

Freeport-McMoRan Inc., receivables turnover 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)
Revenues	22,855)	22,780)	22,845)	14,198)	14,402)
Trade accounts receivable	1,209)	1,336)	1,168)	892)	741)
Short-term Activity Ratio
Receivables turnover¹	18.90	17.05	19.56	15.92	19.44
Benchmarks
Receivables Turnover, Industry
Materials	9.40	9.52	9.46	8.19	8.42

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).

¹ 2023 Calculation
Receivables turnover = Revenues ÷ Trade accounts receivable
= 22,855 ÷ 1,209 = 18.90

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Short-term activity ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Freeport-McMoRan Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Freeport-McMoRan Inc., payables turnover 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)
Cost of sales	15,695)	15,089)	14,030)	11,655)	13,105)
Accounts payable	2,466)	2,701)	2,035)	1,473)	1,654)
Short-term Activity Ratio
Payables turnover¹	6.36	5.59	6.89	7.91	7.92
Benchmarks
Payables Turnover, Industry
Materials	6.05	6.06	5.70	5.92	6.05

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
Payables turnover = Cost of sales ÷ Accounts payable
= 15,695 ÷ 2,466 = 6.36

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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 decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Freeport-McMoRan Inc., working capital turnover 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 assets	14,065)	15,613)	14,830)	9,303)	7,915)
Less: Current liabilities	5,815)	6,345)	5,892)	3,417)	3,209)
Working capital	8,250)	9,268)	8,938)	5,886)	4,706)

Revenues	22,855)	22,780)	22,845)	14,198)	14,402)
Short-term Activity Ratio
Working capital turnover¹	2.77	2.46	2.56	2.41	3.06
Benchmarks
Working Capital Turnover, Industry
Materials	10.81	9.62	9.83	13.50	14.71

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
Working capital turnover = Revenues ÷ Working capital
= 22,855 ÷ 8,250 = 2.77

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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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

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

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data
Inventory turnover	2.59	2.91	3.12	2.99	3.22
Short-term Activity Ratio (no. days)
Average inventory processing period¹	141	125	117	122	113
Benchmarks (no. days)
Average Inventory Processing Period, Industry
Materials	90	76	72	76	71

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.59 = 141

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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 2021 to 2022 and from 2022 to 2023.

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

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data
Receivables turnover	18.90	17.05	19.56	15.92	19.44
Short-term Activity Ratio (no. days)
Average receivable collection period¹	19	21	19	23	19
Benchmarks (no. days)
Average Receivable Collection Period, Industry
Materials	39	38	39	45	43

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 18.90 = 19

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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., operating cycle calculation, comparison to benchmarks

No. days

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data
Average inventory processing period	141	125	117	122	113
Average receivable collection period	19	21	19	23	19
Short-term Activity Ratio
Operating cycle¹	160	146	136	145	132
Benchmarks
Operating Cycle, Industry
Materials	129	114	111	121	114

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 141 + 19 = 160

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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 2021 to 2022 and from 2022 to 2023.

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

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data
Payables turnover	6.36	5.59	6.89	7.91	7.92
Short-term Activity Ratio (no. days)
Average payables payment period¹	57	65	53	46	46
Benchmarks (no. days)
Average Payables Payment Period, Industry
Materials	60	60	64	62	60

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.36 = 57

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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.	Freeport-McMoRan Inc. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

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

No. days

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data
Average inventory processing period	141	125	117	122	113
Average receivable collection period	19	21	19	23	19
Average payables payment period	57	65	53	46	46
Short-term Activity Ratio
Cash conversion cycle¹	103	81	83	99	86
Benchmarks
Cash Conversion Cycle, Industry
Materials	69	54	47	59	54

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 141 + 19 – 57 = 103

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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 improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Freeport-McMoRan Inc. (NYSE:FCX)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle