Stock Analysis on Net
Stock Analysis on Net

Freeport-McMoRan Inc. (NYSE:FCX)

Common-Size Income Statement 

Freeport-McMoRan Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenues 100.00 100.00 100.00 100.00 100.00
Production and delivery -61.10 -59.62 -57.37 -52.67 -71.33
Depreciation, depletion and amortization -8.80 -9.05 -8.86 -8.75 -10.76
Cost of sales -69.91% -68.67% -66.24% -61.41% -82.09%
Gross profit 30.09% 31.33% 33.76% 38.59% 17.91%
Selling, general and administrative expenses -2.02 -2.10 -1.84 -1.68 -2.61
Mining exploration and research expenses -0.61 -0.60 -0.50 -0.24 -0.35
Environmental obligations and shutdown costs -0.50 -1.40 -0.53 -0.40 -1.12
Net gain on sales of assets 0.00 0.00 0.01 0.35 3.33
Operating income 26.97% 27.24% 30.89% 36.62% 17.16%
Interest expense, net -1.25 -2.25 -2.46 -2.64 -4.21
Net gain (loss) on early extinguishment of debt 0.00 0.04 0.14 0.00 -0.71
Other income (expense), net 1.42 1.25 0.91 -0.46 0.42
Income before income taxes and equity in affiliated companies’ net earnings 27.13% 26.28% 29.48% 33.53% 12.66%
Provision for income taxes -9.91 -9.93 -9.95 -10.06 -6.65
Equity in affiliated companies’ net earnings 0.06 0.07 0.14 0.02 0.08
Net income 17.28% 16.41% 19.66% 23.48% 6.09%
Net income attributable to noncontrolling interests -9.86 -8.33 -4.44 -4.64 -1.87
Net income attributable to common stockholders 7.42% 8.09% 15.22% 18.85% 4.22%

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).

The analysis of the annual financial percentages reveals several notable trends in profitability and cost management over the observed periods.

Revenue and Cost Structure
Revenues remained constant as a baseline at 100% across all years, serving as a reference for other financial items measured as a percentage of revenues.
The production and delivery costs showed a significant decrease from -71.33% in 2020 to -52.67% in 2021, suggesting improved operational efficiency or changes in cost structure, though these costs increased again gradually to -61.10% by 2024.
Depreciation, depletion, and amortization expenses remained relatively stable, fluctuating mildly between -10.76% in 2020 and -8.80% in 2024, indicating consistent capital asset usage or amortization patterns.
The overall cost of sales mirrored the trends in production and delivery, falling sharply in 2021 to -61.41% from -82.09% in 2020, then rising progressively each year to -69.91% in 2024.
Profitability Metrics
Gross profit margin as a percentage of revenues improved markedly from 17.91% in 2020 to a peak of 38.59% in 2021, subsequently declining to 30.09% by 2024. This suggests that the company experienced a strong margin surge in 2021 followed by some erosion over the next years.
Operating income followed a similar trajectory, rising from 17.16% in 2020 to 36.62% in 2021 and then decreasing gradually to approximately 27% by 2024, reflecting consistent changes in operational efficiency and cost control after the peak year.
Operating Expenses
Selling, general and administrative expenses remained relatively low and stable, fluctuating narrowly between -2.61% and -1.68%, indicating controlled overhead costs compared to revenue.
Mining exploration and research expenses were minor but increased slightly over time, reaching -0.61% in 2024 from -0.35% in 2020, suggesting increased investment in future operations.
Environmental obligations and shutdown costs displayed volatility, initially at -1.12% in 2020, dropping to -0.40% in 2021, spiking to -1.40% in 2023, and decreasing again to -0.50% in 2024, reflecting possible episodic environmental expenditures or changes in compliance costs.
Non-Operating Items and Net Income
Interest expense declined steadily from -4.21% in 2020 to -1.25% in 2024, indicating reduced debt servicing costs or lower interest rates.
Other income (expense), net, improved from a slight positive 0.42% in 2020 to 1.42% by 2024, showing increasingly favorable non-operating results.
Income before income taxes exhibited a strong rise from 12.66% in 2020 to 33.53% in 2021, then decreased moderately to 27.13% in 2024, consistent with operating income trends.
Provision for income taxes hovered around -10.0% in recent years, suggesting stable effective tax rates relative to revenues.
Net income demonstrated significant growth from 6.09% in 2020 to 23.48% in 2021, before declining to 17.28% in 2024. This pattern aligns with operating profit trends, with 2021 representing a peak profitability year followed by some decline.
Net income attributable to common stockholders experienced a peak in 2021 at 18.85%, then dropped considerably to 7.42% in 2024, highlighting a reduction in profitability available to shareholders after considering noncontrolling interests.
Net income attributable to noncontrolling interests became more negative over time, falling from -1.87% in 2020 to -9.86% in 2024, implying increased minority stakeholder losses or higher allocations of losses to noncontrolling interests.

Overall, the data indicates that the company experienced a significant improvement in profitability in 2021 driven by cost reductions and operating efficiencies, followed by some margin compression and expense increases in subsequent years. Interest costs and non-operating income have improved steadily, aiding net income retention. However, the increasing negative impact on noncontrolling interests warrants attention as it reduces net income attributable to common stockholders.