Freeport-McMoRan Inc. (NYSE:FCX)

The financial data presents multiple key ratios and performance metrics over a five-year period. Analysis of these metrics reveals notable trends in asset utilization, liquidity, leverage, profitability, and efficiency.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit an improvement from 0.34 in 2020 to a peak near 0.48 in 2021, followed by a slight decrease in 2022 and 2023, and a modest rebound in 2024 to 0.46. This pattern suggests enhanced asset utilization in 2021 with a stabilization in subsequent years.

Current Ratio

The reported and adjusted current ratios show a gradual decline over the period, from approximately 2.72–2.78 in 2020 to around 2.42–2.46 by 2024. Despite this decrease, the current ratios remain above 2.4, indicating a consistently strong short-term liquidity position although with a slight downward trend.

Debt to Equity

Both reported and adjusted debt to equity ratios demonstrate a steady reduction, with reported ratios falling from 0.95 in 2020 to 0.51 in 2024 and adjusted ratios decreasing from 0.43 to 0.29 over the same period. This decline signals a progressive reduction in financial leverage and suggests stronger equity financing relative to debt.

Debt to Capital

Similarly, the debt to capital ratios indicate a consistent downward trend, reflecting a decrease in debt levels as a proportion of total capital. The reported ratio falls from 0.49 to 0.34, while the adjusted metric decreases from 0.30 to 0.23, supporting the interpretation of a more conservative capital structure over time.

Financial Leverage

Reported financial leverage decreases from 4.14 in 2020 to 3.12 in 2024, and adjusted financial leverage similarly declines from 1.82 to 1.65. This trend aligns with the decreasing debt ratios and signals reduced reliance on debt and lower risk exposure through leverage.

Net Profit Margin

The reported net profit margin spikes sharply from 4.22% in 2020 to 18.85% in 2021, then declines progressively to 7.42% by 2024. The adjusted net profit margin follows a similar path but remains consistently higher, peaking at 25.68% in 2021 before tapering to 16.59%. This pattern indicates exceptional profitability in 2021 with a subsequent moderation, though still maintaining levels above the initial year.

Return on Equity (ROE)

Reported ROE shows a significant increase in 2021 reaching 30.8%, then declines steadily to 10.74% in 2024. Adjusted ROE follows a comparable trajectory but with generally lower absolute values, peaking at 21.5% and easing to 12.67%. This behavior reflects the strong profitability spike in 2021 coupled with increasing equity base and moderated returns in later years.

Return on Assets (ROA)

Both reported and adjusted ROA exhibit an analogous pattern, rising from modest levels in 2020 to peak values in 2021—reported at 8.97% and adjusted at 12.28%—then falling in subsequent years to still positive levels near 3.44% and 7.68% respectively by 2024. The data show improved asset efficiency and profitability in 2021 with some regression, yet overall better performance compared to 2020.

Overall, the data reveal a phase of improved operational efficiency and profitability primarily concentrated in 2021, accompanied by gradual deleveraging and strengthened liquidity metrics, albeit with some reduction in liquidity ratios over time. Profitability and returns saw a pronounced peak in 2021 with a tapering off in subsequent years, while asset turnover and leverage indicators suggest continued conservative financial management and steady operational capability.

The financial data over the five-year period indicate several notable trends in the company’s operational performance and asset utilization.

Revenues

The revenues show a significant increase from 14,198 million US$ in 2020 to 22,845 million US$ in 2021, representing a substantial growth year-over-year. Following that, revenues remained relatively stable in 2022 and 2023, at approximately 22,780 to 22,855 million US$. In 2024, revenues increased again to 25,455 million US$, suggesting a resurgence in growth after a period of plateau.

Total Assets

Total assets have consistently grown year by year, rising from 42,144 million US$ in 2020 to 54,848 million US$ in 2024. This represents an approximate 30% increase over the five years, indicating ongoing investments or asset accumulation.

Reported Total Asset Turnover

This ratio, which measures the efficiency of asset use in generating revenues, increased sharply from 0.34 in 2020 to 0.48 in 2021. Thereafter, there is a slight decline to 0.45 in 2022 and a marginal decrease to 0.44 in 2023, before rising slightly again to 0.46 in 2024. Overall, this indicates improved asset utilization in 2021, followed by stabilization at a somewhat lower but stable level.

Adjusted Revenues and Adjusted Total Assets

The adjusted revenues closely follow the trend of reported revenues, with values remaining comparable across all years. Adjusted total assets similarly track the reported total assets, showing the same consistent upward trend.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrors the reported ratio closely, indicating consistent calculation methods or adjustments. It rises from 0.34 in 2020 to 0.48 in 2021, declines slightly in subsequent years, and slightly improves in 2024 to 0.46. This suggests stable efficiency in asset use after an initial improvement.

In summary, the company experienced a pronounced growth in revenues and improvement in asset turnover efficiency in 2021, followed by a stabilization period through 2023, then resumed revenue growth in 2024. Total assets steadily increased throughout, with asset utilization ratios remaining relatively stable after their initial improvements. This pattern suggests effective asset management with periods of accelerated revenue growth contributing to overall financial strength.

The analysis of the financial data reveals several key trends regarding liquidity and short-term financial position over the five-year period from the end of 2020 to the end of 2024.

Current Assets

There was a significant increase in current assets from 2020 to 2022, peaking at 15,613 million US dollars in 2022. After this peak, current assets showed a downward trend, decreasing to 13,296 million US dollars by the end of 2024.

Current Liabilities

Current liabilities experienced an upward trend through 2020 to 2022, rising from 3,417 million to 6,345 million US dollars. From 2023 onwards, there was a gradual reduction, reaching 5,496 million US dollars by 2024.

Reported Current Ratio

The reported current ratio, indicating the company's ability to cover short-term obligations, decreased steadily from 2.72 in 2020 to 2.42 in 2024. This suggests a mild decline in liquidity, though the ratio remains above 2.4, indicating a relatively comfortable coverage of current liabilities by current assets.

Adjusted Current Liabilities

Adjusted current liabilities followed a similar pattern to reported current liabilities, rising from 3,352 million US dollars in 2020 to 6,269 million in 2022 before declining to 5,405 million in 2024. The adjustment appears to slightly decrease the reported liabilities figures.

Adjusted Current Ratio

The adjusted current ratio declined from 2.78 in 2020 to 2.46 in 2024, mirroring the downward trend observed in the reported current ratio but generally presenting marginally higher liquidity levels. This downward trajectory suggests a gradual tightening of short-term financial flexibility.

Overall, the data reflect a period of growth in current assets and liabilities until 2022, followed by a moderate reduction in both. The consistent decline in both reported and adjusted current ratios over the five years indicates a slight decrease in liquidity, though the company maintains stable short-term financial health with ratios above 2.4.

The financial data reveals several notable trends over the five-year period from 2020 to 2024.

Total Debt

Total debt has fluctuated slightly across the years. It started at $9,711 million in 2020, decreased to $9,450 million in 2021, then peaked at $10,620 million in 2022 before declining again to $9,422 million in 2023 and further to $8,948 million in 2024. This indicates some variability, likely influenced by debt issuance and repayments, but the overall trend in the last two years shows a reduction in total debt.

Stockholders’ Equity

Stockholders’ equity has exhibited consistent growth throughout the period. It increased from $10,174 million in 2020 to $17,581 million in 2024, reflecting strengthening equity capital over these years. This steady upward trend suggests improved retained earnings, capital injections, or gains that enhance the company's net worth.

Reported Debt to Equity Ratio

The reported debt to equity ratio shows a clear declining trend, moving from 0.95 in 2020 to 0.51 in 2024. This indicates a reduction in financial leverage relative to equity, implying the company is relying less on debt financing and increasing the equity base, thereby potentially lowering financial risk.

Adjusted Total Debt

Adjusted total debt figures follow a similar pattern to total debt but remain consistently higher, starting at $9,939 million in 2020 and peaking at $10,952 million in 2022 before decreasing to $9,738 million in 2024. This adjustment likely accounts for additional liabilities or off-balance-sheet items that give a more comprehensive measure of debt.

Adjusted Total Equity

Adjusted total equity also shows steady growth from $23,141 million in 2020 to $33,237 million in 2024. This metric is substantially higher than reported stockholders’ equity, suggesting inclusion of other equity components or revaluations that enhance the equity base. The steady increase aligns with improving financial strength.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio declines from 0.43 in 2020 to 0.29 in 2024, mirroring the trend observed in the reported ratio but at lower levels. This decline highlights a gradual deleveraging trend and improved capital structure when considering adjusted measures, reinforcing the company’s movement toward lower leverage and greater financial stability.

Overall, the data reflects a company that has strengthened its equity base significantly while reducing its reliance on debt financing. The decreasing leverage ratios underscore a lower financial risk profile over the five-year period. Both reported and adjusted metrics confirm a trend of deleveraging and enhanced capital structure health.

The financial data reveals several notable trends across the reviewed years. Total debt exhibited fluctuations, beginning at 9,711 million US dollars in 2020, decreasing slightly to 9,450 million in 2021, then peaking at 10,620 million in 2022 before declining again to 8,948 million by 2024. In contrast, total capital showed a consistent upward trajectory, growing from 19,885 million US dollars in 2020 to 26,529 million in 2024, indicating an overall expansion of the company's capital base.

The reported debt to capital ratio declined steadily throughout the period, dropping from 0.49 in 2020 to 0.34 in 2024. This suggests a gradual reduction in the proportion of debt within the company's capital structure, reflecting potentially improved financial stability or a strategic move towards lowering leverage.

Considering adjusted figures, adjusted total debt mirrored the pattern of total debt with some variation, starting at 9,939 million US dollars in 2020, increasing to a peak of 10,952 million in 2022, and then decreasing to 9,738 million by 2024. Adjusted total capital grew continuously from 33,080 million in 2020 to 42,975 million in 2024, consistent with the trend seen in total capital but on a larger scale, possibly reflecting different accounting adjustments or additional components included in the adjusted data.

The adjusted debt to capital ratio followed a downward trend similar to the reported ratio, decreasing from 0.30 in 2020 to 0.23 in 2024. This indicates a consistent reduction in leverage when considering adjusted figures, reinforcing the observation of strengthened capital structure and potentially lower financial risk.

Total Debt

Fluctuated with a peak in 2022 but ultimately declined by 2024.

Total Capital

Exhibited continuous growth over the entire period.

Reported Debt to Capital Ratio

Consistently decreased, indicating reduced leverage.

Adjusted Total Debt

Followed a similar pattern to total debt but at higher absolute levels.

Adjusted Total Capital

Grew steadily, reflecting an expanding adjusted capital base.

Adjusted Debt to Capital Ratio

Decreased steadily, suggesting a sustained decline in leverage on an adjusted basis.

Overall, the data indicates that the company managed its debt levels prudently relative to its capital expansion. The declining leverage ratios both in reported and adjusted terms point towards a strengthening financial position and possibly a strategic emphasis on maintaining a more conservative capital structure.

The annual financial data reveals a consistent growth pattern in total assets and stockholders’ equity over the five-year period. Total assets increased steadily from $42,144 million in 2020 to $54,848 million in 2024, indicating asset expansion and potential scaling of operations. Similarly, stockholders’ equity rose from $10,174 million to $17,581 million during the same timeframe, reflecting an overall strengthening of the company's net worth.

Financial leverage ratios, both reported and adjusted, display a downward trend, signaling a reduction in relative debt levels compared to equity. The reported financial leverage decreased from 4.14 in 2020 to 3.12 in 2024, suggesting enhanced financial stability and lower reliance on debt financing. Adjusted financial leverage also declined from 1.82 to 1.65, supporting the notion of prudent financial management when adjusted for certain factors.

The adjusted total assets closely follow the trend of reported total assets, showing steady growth from $42,144 million to $54,840 million. Adjusted total equity demonstrates a stronger growth trajectory, increasing from $23,141 million to $33,237 million. This indicates that the adjustments significantly increase the equity base, highlighting strong capital adequacy when these adjustments are taken into account.

Total Assets

Increased consistently each year, with a growth of approximately 30% over five years, indicating asset base expansion.

Stockholders’ Equity

Showed a notable upward trend, increasing by about 73%, suggesting retained earnings growth and/or equity issuance.

Reported Financial Leverage

Fell steadily, reflecting reduced debt burden relative to equity and enhanced solvency.

Adjusted Total Assets and Equity

Both increased consistently, with adjusted equity showing a sharper rise than total assets, implying improved financial robustness when adjustments are considered.

Adjusted Financial Leverage

Displayed a moderate decline, stabilizing around 1.64-1.65 in recent years, indicating effective leverage management on an adjusted basis.

Overall, the data portrays a company that has been expanding its asset base while strengthening its equity position and improving its financial leverage ratios. This trend towards lower leverage and higher equity suggests a more conservative capital structure and potentially lower financial risk over the observed period.

The financial data exhibits notable fluctuations and trends over the five-year period, revealing variations in profitability and revenue performance.

Revenue Trends

Revenues increased significantly from 2020 to 2021, rising from approximately 14.2 billion US dollars to 22.8 billion US dollars. Following this surge, revenues remained relatively stable through 2022 and 2023, hovering around 22.8 billion US dollars. In 2024, a further increase was observed, with revenues reaching 25.5 billion US dollars, indicating a positive growth trajectory in the most recent year.

Net Income and Profitability

Net income attributable to common stockholders showed substantial volatility. It peaked at 4.3 billion US dollars in 2021, then declined steadily to approximately 1.9 billion US dollars by 2024. Correspondingly, the reported net profit margin followed a similar pattern, achieving its highest value of 18.85% in 2021 before decreasing each subsequent year to 7.42% in 2024. This decline suggests a reduction in profitability relative to revenue, despite revenue growth.

Adjusted Income and Margins

Adjusted net income followed an overall declining trend after reaching a maximum of 5.9 billion US dollars in 2021, falling to 4.2 billion US dollars by 2024. Adjusted revenues mirrored the reported revenues, with a peak in 2021 and a subsequent plateau before rising again in 2024. The adjusted net profit margin also demonstrated a downward trend from a high of 25.68% in 2021 to 16.59% in 2024, indicating reduced profitability on an adjusted basis.

Summary of Financial Performance

The period showed a strong revenue growth phase culminating in 2021, followed by stabilization and further moderate growth in 2024. However, profitability, as measured by both reported and adjusted net income and margins, peaked in 2021 and declined thereafter. This divergence suggests increased costs, reduced efficiency, or other factors negatively affecting profits despite sustained or growing revenues. The data indicates the company may face challenges in maintaining profitability levels achieved in earlier years.

The financial data over the five-year period displays distinct trends in profitability, equity base, and return on equity measures.

Net Income Attributable to Common Stockholders

The net income showed a significant increase from 599 million US dollars in 2020 to a peak of 4,306 million in 2021, indicating strong profitability growth. However, the subsequent years saw a decline with net income falling to 3,468 million in 2022 and further down to 1,848 million in 2023. By 2024, net income slightly increased to 1,889 million but remained substantially lower than the 2021 peak.

Stockholders’ Equity

Shareholders’ equity exhibited a consistent upward trajectory, growing from 10,174 million US dollars in 2020 to 17,581 million in 2024. This steady increase suggests ongoing capital accumulation and retention of earnings contributing to the equity base.

Reported Return on Equity (ROE)

Reported ROE showed a sharp rise from 5.89% in 2020 to 30.8% in 2021, followed by a decline to 22.3% in 2022. Thereafter, it continued to fall steadily to 11.07% in 2023 and 10.74% in 2024, reflecting diminishing profitability relative to shareholders’ equity despite the equity growth.

Adjusted Net Income

Adjusted net income, which provides a normalized earnings perspective, increased significantly from 1,303 million US dollars in 2020 to 5,899 million in 2021. It then experienced a decline over the next three years to 4,211 million in 2024, mirroring the trend in reported net income but at higher absolute values.

Adjusted Total Equity

Adjusted total equity demonstrated a consistent increase similar to reported equity, rising from 23,141 million in 2020 to 33,237 million in 2024. This reflects growth in the equity base on an adjusted basis, potentially accounting for items excluded from reported equity.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE increased considerably from 5.63% in 2020 to 21.5% in 2021, then declined to 16.19% in 2022. The downward trend continued to 12.67% in 2024. This indicates that adjusted profitability relative to the equity base peaked in 2021 and has since moderated, albeit maintaining a higher level than at the beginning of the period.

Overall, the financial results suggest a year of exceptional profitability in 2021, followed by a period of declining earnings performance through 2024. The equity base expanded steadily throughout the period, reflecting capital growth. Both reported and adjusted return on equity experienced a substantial decrease following the 2021 peak, indicating that earnings growth did not keep pace with the expansion in equity during subsequent years. The adjusted metrics, while higher in absolute amounts, display similar directional trends to the reported figures, reinforcing the observed movement in profitability and capital structure.

The financial data reveals several key trends over the five-year period. Net income attributable to common stockholders exhibited significant volatility, peaking sharply in 2021 at 4,306 million US dollars before declining over the subsequent years to 1,889 million US dollars by 2024. This suggests that earnings were subject to considerable fluctuations, with a notable improvement in 2021 followed by a gradual downward trend.

Total assets demonstrated a consistent and steady increase each year, rising from 42,144 million US dollars in 2020 to 54,848 million US dollars in 2024. This indicates ongoing growth in the company's asset base, reflecting expansion or investment activities despite the variability in net income.

Reported Return on Assets (ROA) mirrored the pattern observed in net income, with a sharp increase to 8.97% in 2021, followed by a decline to 3.44% in 2024. This decline highlights a reduction in the efficiency with which the company utilized its assets to generate net income over time.

Adjusted net income, which accounts for certain modifications to the reported net income, followed a pattern similar to the reported net income but at higher levels, peaking at 5,899 million US dollars in 2021 and then gradually decreasing to 4,211 million US dollars in 2024. This suggests that adjustments had a substantial effect on reported profitability, potentially normalizing one-time items or other irregularities.

Adjusted total assets closely tracked the growth in total assets, increasing steadily from 42,144 million US dollars in 2020 to 54,840 million US dollars in 2024, indicating consistency in asset valuation after adjustments.

Adjusted ROA showed the highest return in 2021 at 12.28%, followed by consistent decreases each year down to 7.68% in 2024. Although adjusted ROA remained higher than the reported ROA throughout the period, the downward trend suggests a gradual decline in the company's operational efficiency or profitability on an asset base adjusted for specific factors.

Net income attributable to common stockholders

Highly volatile with a peak in 2021 and subsequent decline through 2024.

Total assets

Steadily increasing from 2020 to 2024, indicating asset growth.

Reported ROA

Peaked in 2021, then steadily declined, reflecting reduced asset utilization effectiveness.

Adjusted net income

Higher than reported net income but followed a similar trend, peaking in 2021 and declining thereafter.

Adjusted total assets

Nearly identical growth pattern to total assets, showing consistent asset valuation adjustments.

Adjusted ROA

Highest return in 2021 with a steady decline to 7.68% by 2024, indicating decreasing adjusted profitability per asset unit.