Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
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- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
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Liquidity Ratios (Summary)
Freeport-McMoRan Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio
- The current ratio exhibited fluctuations over the observed periods, beginning at 2.34 in the first quarter of 2020 and reaching a peak of 2.94 in the second quarter of 2023. After this peak, the ratio experienced a general decline with minor variations, ending at 2.47 in the second quarter of 2025. Overall, the current ratio remained above 2.3, indicating a generally stable liquidity position with a capacity to cover short-term liabilities consistently above two times.
- Quick Ratio
- The quick ratio showed a general upward trend from 0.86 in the first quarter of 2020 to a maximum of 1.66 in the third and fourth quarters of 2021. Following this peak, it demonstrated a downward trend with moderate fluctuations, declining to 1.11 by the second quarter of 2025. Despite the decrease, the quick ratio remained above 1.0 in most recent quarters, suggesting a relatively strong ability to meet immediate liabilities without relying heavily on inventory.
- Cash Ratio
- The cash ratio improved notably from 0.51 in the first quarter of 2020 to a high of 1.60 in the second quarter of 2022. Post-peak, the ratio declined steadily, reaching a lower range of around 0.82 to 0.85 by the first and second quarters of 2025. This trend indicates a decrease in highly liquid assets relative to current liabilities in the most recent periods but still presents a significant increase when compared to the initial values in 2020, reflecting enhanced liquidity management in cash or cash equivalents during the earlier years of the period.
Current Ratio
Freeport-McMoRan Inc., current ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
- Current Assets
- The current assets display an overall upward trend from March 2020 through the end of 2021, increasing from 7,357 million USD to 14,830 million USD. This growth continues into 2022, peaking around mid-year at 16,182 million USD, followed by a slight decline and stabilization near 14,000 to 15,000 million USD throughout 2023 and early 2024. The most recent periods show a moderate decrease, with current assets falling to approximately 13,636 million USD by mid-2025.
- Current Liabilities
- Current liabilities increased significantly between March 2020 and December 2021, rising from 3,143 million USD to 5,892 million USD, indicating a growing short-term debt or obligations during this period. While there is some fluctuation afterward, liabilities generally remain elevated relative to early 2020 levels. Notably, a decrease occurs during mid-2023, dropping to 4,788 million USD, before increasing again towards mid-2025 reaching about 5,531 million USD.
- Current Ratio
- The current ratio, reflecting liquidity and short-term solvency, fluctuates within a range from approximately 2.3 to 2.9 over the period. Initially, it improves from 2.34 in March 2020 to 2.72 by year-end 2020, then declines slightly during 2021 but remains above 2.2. Further fluctuations occur in 2022 and 2023, with the ratio peaking at 2.94 in mid-2023, suggesting strong liquidity at that time. However, this ratio trends downward again after that, settling near 2.3 to 2.5 in 2024 and 2025, signaling a somewhat reduced but stable liquidity position compared to earlier years.
Quick Ratio
Freeport-McMoRan Inc., quick ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
- Total Quick Assets
- The total quick assets exhibit a generally upward trend from March 2020 through mid-2022, increasing from 2,708 million USD to a peak of 10,904 million USD in June 2022. There is some volatility thereafter, with a noticeable decline at the end of 2022 and into 2023, dropping to around 7,722 million USD by September 2023. Subsequently, the quick assets fluctuate moderately, ranging between approximately 5,953 million USD and 8,480 million USD from late 2023 through mid-2025, without a clear upward or downward long-term trajectory within this period.
- Current Liabilities
- Current liabilities initially rise steeply between the first quarter of 2020 and the end of 2021, moving from 3,143 million USD to 5,892 million USD. From early 2022, liabilities demonstrate fluctuations but maintain levels generally above 5,500 million USD. Notably, there is a decrease through much of 2023, hitting a low near 4,788 million USD in June 2023, followed by an increase again to roughly 6,305 million USD by mid-2024. The amounts slightly decline toward mid-2025, ending around 5,531 million USD. Overall, current liabilities display variability with short-term increases and decreases but remain elevated compared to the early 2020 baseline.
- Quick Ratio
- The quick ratio starts below 1.0 in March 2020 at 0.86, indicating quick assets are less than current liabilities at that time. This ratio improves steadily through 2020 and 2021, peaking at 1.66 during September and December 2021, reflecting stronger liquidity. In 2022, the ratio remains above 1.5 for most quarters before drifting downward through 2023 and into 2024. By early 2025, the quick ratio declines to just above 1.0, signaling a reduction in liquidity cushion compared to liabilities but still maintaining a marginal surplus of quick assets over liabilities. The trend illustrates an overall enhancement in liquidity through 2021, followed by a gradual erosion towards the later periods observed.
Cash Ratio
Freeport-McMoRan Inc., cash ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
- Total cash assets
- The total cash assets exhibited significant volatility over the examined periods. Initially, cash assets increased steadily from 1,602 million USD on March 31, 2020, to a peak of 8,068 million USD by December 31, 2021. Following this peak, a decline trend is observed, with amounts decreasing progressively from 8,338 million USD at the start of 2022 to 4,720 million USD by June 30, 2025. This represents a considerable reduction in liquidity over time after an initial accumulation phase.
- Current liabilities
- Current liabilities demonstrate a rising trend from March 31, 2020 (3,143 million USD) through most of 2021, peaking at 5,892 million USD by December 31, 2021. The following years show fluctuation with a tendency towards elevated levels, oscillating between approximately 4,788 million USD and 6,305 million USD. By June 30, 2025, liabilities stand at 5,531 million USD, indicating sustained high short-term obligations relative to earlier years.
- Cash ratio
- The cash ratio, representing the liquidity measure relative to current liabilities, increased strongly from 0.51 on March 31, 2020, rising above 1.0 by the end of 2020, reaching a maximum of 1.6 in June 2022. This reflects a robust ability to cover short-term liabilities with cash assets during that time frame. However, a downward trend follows post mid-2022, with the ratio reducing steadily to 0.85 by June 30, 2025. This decline indicates a weakening liquidity position, suggesting that cash assets are becoming less sufficient to cover current liabilities as time progresses.
- Summary
- Overall, liquidity improved markedly up to mid-2022, driven by increased cash holdings surpassing current liabilities. Subsequently, a reversal is observed with cash assets declining and current liabilities remaining relatively high, resulting in a diminishing cash ratio and potentially increased liquidity risk. The patterns suggest cautious monitoring of short-term financial health is advisable moving forward, as capacity to meet immediate obligations with cash reserves weakens.