Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Freeport-McMoRan Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
An analysis of the liquidity position reveals a general tightening of short-term financial flexibility from March 2022 through June 2026. While the overall current asset coverage remains above a 2.0 threshold, there is a pronounced downward trajectory in the more stringent measures of immediate liquidity.
- Current Ratio
- The current ratio experienced an initial increase, reaching a peak of 2.94 in June 2023, before entering a period of gradual contraction. By June 2026, the ratio declined to 2.07. Despite this decrease, the ratio indicates that current assets consistently exceed current liabilities throughout the period.
- Quick Ratio
- A consistent downward trend is observed in the quick ratio, which fell from 1.84 in June 2022 to 0.84 by June 2026. A critical transition occurred in December 2025, where the ratio dropped below 1.0, signaling that liquid assets excluding inventory are no longer sufficient to cover short-term obligations.
- Cash Ratio
- The cash ratio exhibits a similar decline, moving from a high of 1.60 in June 2022 to 0.64 in June 2026. This trend reflects a systematic reduction in the availability of cash and cash equivalents relative to current liabilities, with the ratio falling below the 1.0 mark in March 2024.
The widening gap between the current ratio and the quick ratio indicates an increasing concentration of current assets in inventory. This divergence suggests that while the company maintains a superficially strong liquidity position, its ability to meet immediate obligations without relying on the sale of inventory has diminished significantly over the analyzed timeframe.
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Current Ratio
Freeport-McMoRan Inc., current ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 14,165 ÷ 6,856 = 2.07
The company maintains a consistently strong liquidity position throughout the period from March 2022 to June 2026, with the current ratio remaining above 2.0 at all times. This indicates a substantial capacity to cover short-term obligations with current assets.
- Current Asset Trends
- Current assets peaked at 16,182 million US$ in June 2022, followed by a general downward trajectory that reached a low of 13,296 million US$ in December 2024. A period of stabilization and modest recovery occurred between March 2025 and June 2026, with assets ending at 14,165 million US$.
- Current Liability Trends
- Current liabilities showed significant fluctuation, declining from 6,454 million US$ in March 2022 to a period low of 4,788 million US$ in June 2023. Following this low, liabilities trended generally upward, peaking at 6,856 million US$ in June 2026, which represents the highest level of short-term obligations observed in the analyzed timeframe.
- Current Ratio Analysis
- The current ratio reached its peak of 2.94 in June 2023, coinciding with the lowest point of current liabilities. For the remainder of 2023 and through 2025, the ratio remained relatively stable, oscillating between 2.29 and 2.47. A notable contraction is observed in the final quarter, with the ratio dropping to 2.07 in June 2026, driven primarily by the increase in current liabilities relative to a stagnant asset base.
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Quick Ratio
Freeport-McMoRan Inc., quick ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,728 ÷ 6,856 = 0.84
The liquidity position of the company exhibits a consistent long-term decline over the period from March 2022 to June 2026. While a strong liquidity buffer was maintained during the initial phase of the observed period, a steady erosion of quick assets relative to current liabilities has resulted in a diminished capacity to meet short-term obligations without relying on inventory liquidation.
- Quick Asset Trend
- Total quick assets experienced a significant reduction, falling from a peak of 10,904 million USD in June 2022 to 5,728 million USD by June 2026. A particularly sharp decrease is noted between September 2024 and December 2024, where assets dropped from 7,666 million USD to 5,953 million USD, representing a substantial contraction in liquid resources.
- Current Liabilities Behavior
- Current liabilities fluctuated within a range of approximately 4,788 million USD to 6,454 million USD for the majority of the analyzed timeframe. However, a notable upward trend emerged toward the end of the period, culminating in a peak of 6,856 million USD in June 2026, which intensified the pressure on the liquidity ratio.
- Quick Ratio Degradation
- The quick ratio transitioned from a position of strength, peaking at 1.84 in June 2022, to a position of potential liquidity strain. The ratio remained consistently above 1.50 until September 2023, after which a downward trajectory began. The ratio fell below the critical 1.00 threshold in December 2025 at 0.95 and reached its period low of 0.84 by June 2026, indicating that quick assets are no longer sufficient to cover current liabilities.
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Cash Ratio
Freeport-McMoRan Inc., cash ratio calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,358 ÷ 6,856 = 0.64
The analysis of liquidity indicators reveals a progressive decline in the cash position relative to immediate obligations over the period from March 2022 through June 2026.
- Total Cash Assets Trend
- A sustained reduction in cash reserves is evident. Total cash assets peaked at 9,492 million US dollars in June 2022 before entering a long-term downward trajectory. By December 2025, reserves had fallen to 4,054 million US dollars, representing a significant contraction in liquid capital. Although a slight recovery to 4,358 million US dollars occurred by June 2026, the overall trend remains negative compared to the initial 2022 levels.
- Current Liabilities Behavior
- Current liabilities exhibited fluctuations, generally remaining between 4,788 million US dollars and 6,856 million US dollars. While there were periodic decreases, notably in mid-2023, the trend toward the end of the analyzed period shows a marked increase, reaching a high of 6,856 million US dollars by June 2026. This increase in short-term obligations occurs simultaneously with the period of lower cash availability.
- Cash Ratio Interpretation
- The cash ratio demonstrates a clear deterioration in immediate liquidity. From March 2022 to September 2023, the ratio remained consistently above 1.0, peaking at 1.60, which indicated that cash assets alone were sufficient to cover all current liabilities. However, beginning in March 2024, the ratio fell below the 1.0 threshold and continued a steady decline, reaching 0.64 by June 2026. This transition signifies a shift from a highly liquid position to one where cash assets cover only a fraction of immediate liabilities, suggesting an increased reliance on other current assets or external financing to meet short-term obligations.
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