Return on Equity (ROE)
since 2005
Calculation
Freeport-McMoRan Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to FCX1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 10.74% | = | 100 | × | 1,889) | ÷ | 17,581) |
| Dec 31, 2023 | 11.07% | = | 100 | × | 1,848) | ÷ | 16,693) |
| Dec 31, 2022 | 22.30% | = | 100 | × | 3,468) | ÷ | 15,555) |
| Dec 31, 2021 | 30.80% | = | 100 | × | 4,306) | ÷ | 13,980) |
| Dec 31, 2020 | 5.89% | = | 100 | × | 599) | ÷ | 10,174) |
| Dec 31, 2019 | -2.57% | = | 100 | × | (239) | ÷ | 9,298) |
| Dec 31, 2018 | 26.56% | = | 100 | × | 2,602) | ÷ | 9,798) |
| Dec 31, 2017 | 22.78% | = | 100 | × | 1,817) | ÷ | 7,977) |
| Dec 31, 2016 | -68.65% | = | 100 | × | (4,154) | ÷ | 6,051) |
| Dec 31, 2015 | -156.31% | = | 100 | × | (12,236) | ÷ | 7,828) |
| Dec 31, 2014 | -7.15% | = | 100 | × | (1,308) | ÷ | 18,287) |
| Dec 31, 2013 | 12.70% | = | 100 | × | 2,658) | ÷ | 20,934) |
| Dec 31, 2012 | 17.33% | = | 100 | × | 3,041) | ÷ | 17,543) |
| Dec 31, 2011 | 29.15% | = | 100 | × | 4,560) | ÷ | 15,642) |
| Dec 31, 2010 | 34.68% | = | 100 | × | 4,336) | ÷ | 12,504) |
| Dec 31, 2009 | 30.15% | = | 100 | × | 2,749) | ÷ | 9,119) |
| Dec 31, 2008 | -191.70% | = | 100 | × | (11,067) | ÷ | 5,773) |
| Dec 31, 2007 | 16.33% | = | 100 | × | 2,977) | ÷ | 18,234) |
| Dec 31, 2006 | 59.57% | = | 100 | × | 1,457) | ÷ | 2,445) |
| Dec 31, 2005 | 54.00% | = | 100 | × | 995) | ÷ | 1,843) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance demonstrates considerable volatility over the observed period, particularly with regard to profitability and equity returns. Net income attributable to the entity showed strong growth in the early years, peaking notably in 2007 at $2,977 million before experiencing a substantial loss in 2008 of $11,067 million. Following this decline, net income recovered modestly and fluctuated thereafter, including another significant negative figure in 2015 at $12,236 million. More recent years reflect a return to profitability, though with less pronounced gains compared to the initial peak, concluding with net income values around $1,889 million in 2024.
Stockholders' equity increased markedly from 2005 through 2007, reaching $18,234 million, but then experienced a sharp drop in 2008 to $5,773 million. From that point onward, equity showed a generally upward trajectory with some fluctuations, increasing steadily from 2012 at $17,543 million to $17,581 million in 2024. Despite the earlier abrupt decline, the long-term trend suggests consolidation and growth in equity capital.
The Return on Equity (ROE) ratio exhibits significant variability, closely mirroring the fluctuations in net income. Early years show strong positive returns, with ROE peaking near 60% in 2006. The dramatic net losses in 2008 correspond with heavily negative ROE (-191.7%), indicating considerable financial distress during that period. Although ROE improves thereafter, it remains volatile, including negative returns in 2014 and 2015. From 2017 onwards, the ratio stabilizes into a moderate positive range, ending around 10.74% in 2024. This stabilization suggests improved operational efficiency and more consistent profitability in recent years.
Overall, the data reveals a cycle of pronounced economic challenges followed by recovery phases. The early growth in net income and equity was impacted by significant financial setbacks around 2008 and mid-2010s, with both metrics exhibiting recovery and stabilization trends subsequently. ROE volatility emphasizes the sensitivity of profitability to these fluctuations, though recent years indicate a return to sustainable financial performance.
- Net Income (Loss) Trend
- High growth until 2007, a sharp loss in 2008, partial recovery with fluctuations, another deep loss around 2015, and a gradual return to profitability thereafter.
- Stockholders’ Equity Trend
- Significant increase until 2007, steep decline in 2008, followed by a generally upward trend to 2024, reflecting recovery and growth in capital.
- Return on Equity (ROE) Trend
- Strong positive performance early on, dramatic negative swings during crisis years, improving stability post-2016, and moderate positive returns through 2024.
Comparison to Industry (Materials)
Freeport-McMoRan Inc., ROE, long-term trends, comparison to industry (materials)
| Freeport-McMoRan Inc. | Materials | |
|---|---|---|
| Dec 31, 2024 | 10.74% | 18.64% |
| Dec 31, 2023 | 11.07% | 17.36% |
| Dec 31, 2022 | 22.30% | 16.42% |
| Dec 31, 2021 | 30.80% | 16.54% |
| Dec 31, 2020 | 5.89% | 8.40% |
| Dec 31, 2019 | -2.57% | 5.74% |
| Dec 31, 2018 | 26.56% | 12.42% |
| Dec 31, 2017 | 22.78% | 27.34% |
| Dec 31, 2016 | -68.65% | -11.75% |
| Dec 31, 2015 | -156.31% | -73.64% |
| Dec 31, 2014 | -7.15% | 5.03% |
| Dec 31, 2013 | 12.70% | 17.62% |
| Dec 31, 2012 | 17.33% | 21.12% |
| Dec 31, 2011 | 29.15% | 29.47% |
| Dec 31, 2010 | 34.68% | 30.11% |
| Dec 31, 2009 | 30.15% | 27.87% |
| Dec 31, 2008 | -191.70% | -82.36% |
| Dec 31, 2007 | 16.33% | 18.96% |
| Dec 31, 2006 | 59.57% | 33.59% |
| Dec 31, 2005 | 54.00% | 29.22% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).