Freeport-McMoRan Inc. (NYSE:FCX)

The financial ratios presented demonstrate several notable trends between 2021 and 2025. Generally, reported ratios exhibit greater volatility than their adjusted counterparts. Asset turnover remains relatively stable, while liquidity and leverage metrics show distinct shifts. Profitability ratios, both reported and adjusted, experience a decline followed by a partial recovery.

Asset Turnover

Both the reported and adjusted total asset turnover ratios remain consistently within a narrow range, fluctuating between 0.44 and 0.48 over the five-year period. There is no significant upward or downward trend observed in asset utilization.

Liquidity

The reported current ratio exhibits a gradual decline from 2.52 in 2021 to 2.29 in 2025, suggesting a slight weakening in short-term liquidity. The adjusted current ratio mirrors this trend, though the decrease is less pronounced. Both ratios remain above 2.0, indicating a generally healthy liquidity position.

Leverage

Reported debt to equity and debt to capital ratios both decrease steadily from 2021 to 2025, indicating a reduction in financial leverage. The adjusted ratios show a more substantial decrease, particularly in debt to equity, falling from 0.36 to 0.30. This suggests that adjustments are significantly impacting the perceived level of debt. Reported financial leverage also declines, though at a slower pace. Adjusted financial leverage shows a similar decreasing trend, stabilizing around 1.65 in the later years.

Profitability

Reported net profit margin experiences a significant decline from 18.85% in 2021 to 7.42% in 2023, before partially recovering to 8.50% in 2025. The adjusted net profit margin demonstrates a less dramatic decline and a more consistent trend, remaining above 16% throughout the period. Both reported and adjusted return on equity (ROE) follow a similar pattern of decline and partial recovery. The adjusted ROE remains consistently higher than the reported ROE. Reported return on assets (ROA) also declines sharply and then shows modest improvement, while the adjusted ROA remains comparatively stable, consistently exceeding the reported ROA.

The divergence between reported and adjusted ratios is a consistent feature across all metrics. The adjustments appear to consistently result in more favorable figures, particularly concerning profitability and leverage. This suggests that the reported financials may include items that negatively impact these ratios, which are then excluded in the adjusted calculations.

The financial information presents a five-year trend of revenues, total assets, and associated asset turnover ratios, both reported and adjusted. Revenues demonstrate a generally increasing pattern over the period, while total assets consistently increased year-over-year. The adjusted total asset turnover ratio exhibits relative stability with minor fluctuations.

Revenue Trend

Revenues remained relatively stable between 2021 and 2023, fluctuating around US$22.8 billion. A noticeable increase occurred in 2024, reaching US$25.455 billion, and continued into 2025 with revenues of US$25.915 billion. This indicates a positive revenue growth trajectory in the latter part of the observed period.

Total Asset Trend

Total assets experienced consistent growth throughout the five-year period. Starting at US$48.022 billion in 2021, assets increased to US$58.167 billion by 2025. The rate of increase appears to be accelerating, with larger absolute increases observed in the later years.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio remained within a narrow range between 0.44 and 0.48 over the five-year period. It began at 0.48 in 2021, decreased to 0.44 in 2022 and remained at 0.44 in 2023. A slight recovery to 0.46 was observed in 2024, followed by a return to 0.45 in 2025. This suggests a consistent, but not improving, efficiency in utilizing assets to generate revenue.

The adjusted revenues and adjusted total assets figures are nearly identical to the reported values for each year, indicating minimal adjustments were made. The stability in the adjusted total asset turnover ratio, despite increasing asset levels and revenue growth, suggests the company is maintaining a consistent operational efficiency in terms of asset utilization.

The reported current ratio exhibited a slight downward trend over the five-year period, decreasing from 2.52 in 2021 to 2.29 in 2025. However, the adjusted current ratio demonstrates a more stable profile, fluctuating within a narrower range. A comparison of the reported and adjusted current ratios reveals the impact of adjustments made to current liabilities.

Current Assets

Current assets decreased from US$14,830 million in 2021 to US$13,296 million in 2023, before experiencing a modest increase to US$13,790 million in 2025. This suggests a period of asset reduction followed by stabilization.

Current Liabilities

Current liabilities generally remained stable, ranging between US$5,815 million and US$6,345 million throughout the period. A slight increase is observed in 2025, reaching US$6,019 million.

Reported Current Ratio

The reported current ratio declined steadily from 2.52 in 2021 to 2.42 in 2023, remaining constant for 2023 and 2024, and then decreasing further to 2.29 in 2025. This indicates a gradual weakening in the company’s ability to cover short-term liabilities with short-term assets, based on reported figures.

Adjusted Current Liabilities

Adjusted current liabilities mirrored the trend of reported current liabilities, fluctuating between US$5,654 million and US$6,269 million. The adjustments made to current liabilities appear to moderate the overall liability figure.

Adjusted Current Ratio

The adjusted current ratio showed greater stability than its reported counterpart. It began at 2.60 in 2021, decreased to 2.49 in 2022, remained constant in 2023, decreased to 2.46 in 2024, and then decreased to 2.33 in 2025. The adjustments to current liabilities resulted in a consistently higher ratio compared to the reported current ratio, suggesting a potentially improved liquidity position when considering these adjustments.

The difference between the reported and adjusted current ratios indicates that the adjustments to current liabilities have a notable impact on the assessment of short-term liquidity. While the reported current ratio shows a more pronounced decline, the adjusted current ratio presents a more stable picture. Further investigation into the nature of these adjustments would be necessary to fully understand their implications.

The adjusted debt to equity ratio demonstrates a generally decreasing trend over the five-year period from 2021 to 2025. While fluctuations are present, the company exhibits a strengthening equity position relative to its adjusted debt obligations.

Adjusted Debt to Equity Ratio - Overall Trend

The adjusted debt to equity ratio began at 0.36 in 2021, increased slightly to 0.37 in 2022, and then decreased to 0.31 in 2023. This downward trend continued into 2024, reaching 0.29, before stabilizing at 0.30 in 2025. This indicates a consistent improvement in the company’s financial leverage, as measured by this adjusted metric.

Adjusted Debt

Adjusted total debt increased from US$9,769 million in 2021 to US$10,952 million in 2022, representing a notable increase. However, it subsequently decreased to US$9,853 million in 2023 and further to US$9,738 million in 2024. A slight increase to US$10,492 million is observed in 2025, but remains below the 2022 peak.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity consistently increased throughout the period. Starting at US$27,442 million in 2021, it rose to US$29,214 million in 2022, US$31,917 million in 2023, US$33,237 million in 2024, and ultimately reached US$35,484 million in 2025. This consistent growth in equity is a primary driver of the decreasing adjusted debt to equity ratio.

Comparison to Reported Debt to Equity

The reported debt to equity ratio, while also showing a decreasing trend from 0.68 in 2021 to 0.50 in 2025, consistently remains significantly higher than the adjusted debt to equity ratio. This difference suggests that the adjustments made to debt and equity have a substantial impact on the perceived financial leverage of the company.

In summary, the company’s adjusted debt to equity ratio indicates improving financial health over the analyzed period, driven by consistent growth in adjusted equity and moderate fluctuations in adjusted debt. The adjustments applied to the standard debt to equity calculation result in a considerably different, and seemingly more favorable, leverage profile.

The adjusted debt to capital ratio demonstrates a generally decreasing trend over the five-year period from 2021 to 2025. While total debt fluctuates, adjusted total debt and adjusted total capital both exhibit consistent growth, influencing the observed ratio behavior.

Adjusted Debt to Capital Ratio - Overall Trend

The adjusted debt to capital ratio begins at 0.26 in 2021, rises slightly to 0.27 in 2022, and then declines steadily to 0.23 in 2023, 0.23 in 2024, and remains at 0.23 in 2025. This indicates a decreasing reliance on debt financing relative to the company’s capital structure over the latter portion of the analyzed period.

Adjusted Total Debt

Adjusted total debt increased from US$9,769 million in 2021 to US$10,952 million in 2022, representing a notable increase. It then decreased to US$9,853 million in 2023 and further to US$9,738 million in 2024. A final increase is observed in 2025, reaching US$10,492 million. The fluctuations suggest potential debt management activities or changes in financing needs.

Adjusted Total Capital

Adjusted total capital shows a consistent upward trend throughout the period. Starting at US$37,211 million in 2021, it grows to US$40,166 million in 2022, US$41,770 million in 2023, US$42,975 million in 2024, and culminates at US$45,976 million in 2025. This consistent growth in capital base contributes to the decreasing adjusted debt to capital ratio.

Comparison to Reported Debt to Capital

The reported debt to capital ratio, while also showing a decreasing trend, consistently reports higher values than the adjusted debt to capital ratio across all years. This difference suggests that the adjustments made to total debt and total capital significantly impact the assessment of the company’s leverage position. The reported ratio decreased from 0.40 in 2021 to 0.33 in 2025, while the adjusted ratio decreased from 0.26 to 0.23 over the same period.

The sustained growth in adjusted total capital, coupled with relatively stable adjusted total debt, has resulted in a more favorable adjusted debt to capital ratio over time. This suggests improved financial flexibility and a potentially reduced risk profile.

The financial information presents a five-year trend of balance sheet items and associated leverage ratios. Total assets demonstrate a consistent upward trajectory, increasing from US$48,022 million in 2021 to US$58,167 million in 2025. Stockholders’ equity also exhibits growth over the period, rising from US$13,980 million to US$18,899 million. Reported financial leverage shows a slight, gradual decrease from 3.44 in 2021 to 3.08 in 2025.

Adjusted Total Assets & Equity

Adjusted total assets closely mirror reported total assets, exhibiting a similar increasing trend from US$48,020 million in 2021 to US$58,157 million in 2025. Adjusted total equity shows a more substantial increase, moving from US$27,442 million in 2021 to US$35,484 million in 2025. This suggests a significant adjustment has been made to the equity calculation.

Adjusted Financial Leverage

Adjusted financial leverage demonstrates a more pronounced decrease compared to the reported leverage ratio. It begins at 1.75 in both 2021 and 2022, then declines to 1.64 in 2023, slightly increases to 1.65 in 2024, and stabilizes at 1.64 in 2025. This indicates that, after adjustment, the company’s asset base is less reliant on equity financing than indicated by the reported figures.

The divergence between reported and adjusted financial leverage is noteworthy. The substantial adjustment to total equity appears to be the primary driver of this difference, resulting in a lower adjusted leverage ratio. The consistent growth in both total assets and adjusted equity suggests a strengthening financial position over the analyzed period, particularly when considering the adjusted metrics.

The adjusted net profit margin exhibited a declining trend over the five-year period, although fluctuations were present. Initial values were substantially higher than subsequent years. A review of the underlying figures reveals a consistent relationship between adjusted net income and adjusted revenues, driving the observed margin behavior.

Adjusted Net Profit Margin - Overall Trend

The adjusted net profit margin decreased from 25.68% in 2021 to 17.06% in 2025. While there were year-over-year variations, the general direction indicates diminishing profitability relative to revenue when considering adjustments.

Adjusted Net Profit Margin - Year-over-Year Changes

From 2021 to 2022, the adjusted net profit margin experienced a notable decrease, falling 4.81 percentage points to 20.87%. A further decline of 2.34 percentage points was observed between 2022 and 2023, reaching 18.53%. The rate of decline slowed between 2023 and 2024, with a decrease of 1.94 percentage points to 16.59%. Finally, a modest increase of 0.47 percentage points occurred between 2024 and 2025, bringing the margin to 17.06%.

Relationship to Underlying Components

Adjusted revenues demonstrated a generally increasing trend, moving from US$22,971 million in 2021 to US$25,930 million in 2025. However, the growth in adjusted net income was less consistent. While adjusted net income increased from US$4,211 million in 2024 to US$4,423 million in 2025, it was lower in 2023 (US$4,251 million) than in 2022 (US$4,731 million). This disparity between revenue growth and net income fluctuations contributed to the observed decline in the adjusted net profit margin.

The reported net profit margin also decreased over the period, but at a slower rate than the adjusted net profit margin. This suggests that the adjustments made to net income and revenues have a significant impact on the profitability picture.

Comparison to Reported Net Profit Margin

The adjusted net profit margin consistently exceeded the reported net profit margin throughout the period. The difference between the two margins varied, but generally remained substantial. This indicates that the adjustments applied are positively impacting the reported profitability figures.

Further investigation into the nature of the adjustments would be necessary to fully understand the drivers behind these trends and their implications for the company’s financial performance.

The adjusted return on equity (ROE) exhibited a declining trend over the five-year period from 2021 to 2025. While net income attributable to common stockholders and stockholders’ equity both generally increased in absolute terms, the adjusted ROE consistently decreased, suggesting changes in the composition of equity or the profitability adjustments are having a greater impact than the growth in net income.

Adjusted ROE Trend

In 2021, the adjusted ROE stood at 21.50%. This figure decreased to 16.19% in 2022, and continued to decline to 13.32% in 2023. The rate of decline slowed slightly in 2024, with the adjusted ROE at 12.67%, and further decreased to 12.46% in 2025. This consistent downward trajectory indicates a diminishing return on adjusted equity over time.

Relationship to Reported ROE

The reported ROE also decreased over the period, from 30.80% in 2021 to 11.66% in 2025. However, the adjusted ROE consistently remained lower than the reported ROE throughout the observed timeframe. This difference suggests that the adjustments made to net income and total equity significantly impact the overall profitability picture. The gap between reported and adjusted ROE narrowed slightly in later years, but remained substantial.

Components of Adjusted ROE

Adjusted net income increased from US$5,899 million in 2021 to US$4,423 million in 2025, but the rate of increase slowed over time. Adjusted total equity demonstrated consistent growth, rising from US$27,442 million in 2021 to US$35,484 million in 2025. The larger increase in adjusted total equity relative to the increase in adjusted net income is a primary driver of the declining adjusted ROE. The denominator is growing at a faster rate than the numerator.

The observed trend suggests that while the company is increasing its equity base and maintaining positive adjusted net income, it is becoming less efficient in generating profits relative to the adjusted equity invested. Further investigation into the nature of the adjustments made to net income and equity would be necessary to fully understand the underlying causes of this trend.

The period between December 31, 2021, and December 31, 2025, demonstrates fluctuating financial performance as indicated by reported and adjusted return on assets. While reported ROA remained relatively stable in the lower single digits towards the end of the period, adjusted ROA exhibited a clear downward trend despite remaining at a higher level.

Adjusted Return on Assets (ROA) - Overall Trend

Adjusted ROA began at 12.28% in 2021, representing the highest value within the observed timeframe. A consistent decline is then observed, decreasing to 9.26% in 2022, 8.10% in 2023, and further to 7.68% in 2024. This downward trajectory continues, albeit at a slower pace, reaching 7.61% in 2025. This suggests a diminishing efficiency in generating profit from assets when considering adjustments.

Adjusted Net Income

Adjusted net income initially decreased from US$5,899 million in 2021 to US$4,731 million in 2022. It then continued to decline to US$4,251 million in 2023 before stabilizing at US$4,211 million in 2024. A slight increase to US$4,423 million is noted in 2025, but it does not recover to the levels seen in 2021. This indicates that while net income is fluctuating, it is not driving the overall decline in adjusted ROA.

Adjusted Total Assets

Adjusted total assets show a consistent upward trend throughout the period. Starting at US$48,020 million in 2021, they increased to US$51,091 million in 2022, US$52,499 million in 2023, US$54,840 million in 2024, and finally reached US$58,157 million in 2025. The continuous growth in asset base, coupled with the declining adjusted ROA, suggests that the increase in assets is not translating into a proportional increase in adjusted profitability.

Comparison with Reported ROA

Reported ROA values are consistently lower than adjusted ROA values across all years. Reported ROA also exhibits a downward trend, though less pronounced than that of adjusted ROA. The difference between reported and adjusted ROA remains relatively stable throughout the period, indicating that the adjustments applied are consistently impacting the profitability metric.

In summary, the observed trends suggest that while the asset base is expanding, the ability to generate profit from those assets, as measured by adjusted ROA, is diminishing. The stabilization of adjusted net income towards the end of the period does not offset the impact of increasing assets on the adjusted ROA metric.