Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Freeport-McMoRan Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Freeport-McMoRan Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Freeport-McMoRan Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Freeport-McMoRan Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Freeport-McMoRan Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Freeport-McMoRan Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Freeport-McMoRan Inc., gross profit margin 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) | ||||||
| Gross profit | 7,160) | 7,691) | 8,815) | 2,543) | 1,297) | |
| Revenues | 22,855) | 22,780) | 22,845) | 14,198) | 14,402) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 31.33% | 33.76% | 38.59% | 17.91% | 9.01% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Newmont Corp. | 12.46% | 19.65% | 21.42% | 33.20% | 23.67% | |
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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 7,160 ÷ 22,855 = 31.33%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Freeport-McMoRan Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Freeport-McMoRan Inc., operating profit margin 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) | ||||||
| Operating income | 6,225) | 7,037) | 8,366) | 2,437) | 1,091) | |
| Revenues | 22,855) | 22,780) | 22,845) | 14,198) | 14,402) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 27.24% | 30.89% | 36.62% | 17.16% | 7.58% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Newmont Corp. | -14.39% | 1.70% | 10.28% | 24.41% | 13.11% | |
| Operating Profit Margin, Sector | ||||||
| Metals & Mining | 13.05% | 20.87% | 27.44% | 20.40% | 9.81% | |
| Operating Profit Margin, Industry | ||||||
| Materials | 18.59% | 18.53% | 22.18% | 16.18% | 10.12% | |
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 profit margin = 100 × Operating income ÷ Revenues
= 100 × 6,225 ÷ 22,855 = 27.24%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Freeport-McMoRan Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Freeport-McMoRan Inc., net profit margin 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) | |
| Revenues | 22,855) | 22,780) | 22,845) | 14,198) | 14,402) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 8.09% | 15.22% | 18.85% | 4.22% | -1.66% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Newmont Corp. | -21.11% | -3.60% | 9.54% | 24.61% | 28.80% | |
| Net Profit Margin, Sector | ||||||
| Metals & Mining | -1.86% | 8.76% | 15.60% | 13.34% | 10.63% | |
| Net Profit Margin, Industry | ||||||
| Materials | 8.22% | 10.56% | 14.12% | 11.20% | 9.26% | |
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
Net profit margin = 100 × Net income (loss) attributable to common stockholders ÷ Revenues
= 100 × 1,848 ÷ 22,855 = 8.09%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Freeport-McMoRan Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Freeport-McMoRan Inc., ROE 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) | |
| Stockholders’ equity | 16,693) | 15,555) | 13,980) | 10,174) | 9,298) | |
| Profitability Ratio | ||||||
| ROE1 | 11.07% | 22.30% | 30.80% | 5.89% | -2.57% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Newmont Corp. | -8.59% | -2.22% | 5.29% | 12.30% | 13.10% | |
| ROE, Sector | ||||||
| Metals & Mining | -1.41% | 8.71% | 15.20% | 10.33% | 8.35% | |
| ROE, Industry | ||||||
| Materials | 6.50% | 9.59% | 11.62% | 7.37% | 6.08% | |
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
ROE = 100 × Net income (loss) attributable to common stockholders ÷ Stockholders’ equity
= 100 × 1,848 ÷ 16,693 = 11.07%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Freeport-McMoRan Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
Freeport-McMoRan Inc., ROA 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) | |
| Total assets | 52,506) | 51,093) | 48,022) | 42,144) | 40,809) | |
| Profitability Ratio | ||||||
| ROA1 | 3.52% | 6.79% | 8.97% | 1.42% | -0.59% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Newmont Corp. | -4.49% | -1.11% | 2.87% | 6.84% | 7.02% | |
| ROA, Sector | ||||||
| Metals & Mining | -0.60% | 3.39% | 6.18% | 4.10% | 3.18% | |
| ROA, Industry | ||||||
| Materials | 2.94% | 4.25% | 5.46% | 3.45% | 2.90% | |
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
ROA = 100 × Net income (loss) attributable to common stockholders ÷ Total assets
= 100 × 1,848 ÷ 52,506 = 3.52%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Freeport-McMoRan Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |