Freeport-McMoRan Inc. (NYSE:FCX)

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.