Freeport-McMoRan Inc. (NYSE:FCX)

Current ratio

The current ratio demonstrates a generally stable pattern over the observed quarters, with minor fluctuations. Starting at 2.35 in March 2021, it showed a gradual increase, peaking at 2.94 in June 2023, indicating improved short-term liquidity at that point. Subsequently, the ratio slightly decreased, moving around the mid-2.3 to 2.4 range through to September 2025. Overall, the current ratio maintains a level above 2, suggesting a consistent ability to cover current liabilities with current assets throughout the period.

Quick ratio

The quick ratio exhibits noticeable variability within the timeframe. Initially, the ratio improves from 1.38 in March 2021 to a high of 1.84 in June 2022, implying an increase in liquid assets relative to current liabilities. Following this peak, the ratio declines, reaching as low as 1.04 in June 2025 before a slight increase to 1.11 by September 2025. The downtrend in the latter periods suggests a reduction in highly liquid assets relative to immediate liabilities, though the ratio remains above 1 throughout, indicating a generally adequate level of liquidity.

Cash ratio

The cash ratio trend reflects somewhat similar dynamics to the quick ratio but with generally lower values. It rises from 0.99 in March 2021 to a peak of 1.6 in June 2022, signifying an increased cash and cash equivalents buffer to current liabilities. Following this peak, there is a consistent decline in the cash ratio, bottoming out around 0.82 in September 2025. This decline points to a reduced coverage of current liabilities by cash and cash equivalents over time, which may require attention regarding liquidity management, although the ratio remains close to 1 in earlier periods.

Current Assets

The current assets exhibited a generally upward trend from the first quarter of 2021 through the end of 2022, increasing from 10,856 million USD to a peak of approximately 16,182 million USD in mid-2022. Following this peak, current assets showed a gradual decline through 2023 and into early 2025, trending downward to approximately 13,564 million USD by the third quarter of 2025. This pattern suggests accumulation of liquid or near-liquid assets until mid-2022, with subsequent asset reductions or reallocation in the following periods.

Current Liabilities

Current liabilities increased from 4,611 million USD at the start of 2021 to a high point near 6,454 million USD in early 2022, indicating a rise in short-term obligations. Afterward, liabilities decreased notably during 2023, reaching a low of approximately 4,788 million USD in the middle of that year. Subsequently, liabilities fluctuated moderately between 5,000 and 6,300 million USD through 2024 and into 2025, reflecting a somewhat stabilized level of short-term obligations but with periodic, moderate variability.

Current Ratio

The current ratio remained above 2.2 throughout the entire period, indicating a consistently strong liquidity position relative to current liabilities. The ratio showed some volatility, declining slightly from approximately 2.35 in early 2021 to 2.28 mid-year 2021, then increasing to a peak of 2.94 during mid-2023. After this peak, there was a downward adjustment toward approximately 2.32-2.47 during 2024 and 2025. Overall, the current ratio demonstrates that the company's ability to cover short-term liabilities with current assets was solid, with some improvements particularly evident in 2023 followed by modest normalization.

Summary Insights

The data reveal strong liquidity management over the analyzed period. The rise in current assets was accompanied by an increase in current liabilities until early 2022, after which current liabilities decreased and became more stable, while current assets declined moderately. The high current ratio throughout suggests the company maintained a conservative liquidity buffer, providing a comfortable margin to meet short-term obligations. The peak in liquidity ratios during mid-2023 could indicate strategic strengthening of the balance sheet, possibly in response to market conditions or operational needs. The moderate downward adjustment thereafter suggests a return to normalized operational levels.

The analysis of the quarterly financial data reveals distinct trends in the liquidity position over the examined periods.

Total quick assets

The total quick assets display an initial upward trend from the beginning of 2021 through mid-2022, reaching a peak above 10 billion USD. Following this peak, a general decline is observed—from early 2023 through the projected quarters ending in late 2025, the quick assets diminish steadily, falling to levels near 6 billion USD by the end of the forecasted period.

Current liabilities

Current liabilities fluctuate over the periods but demonstrate a moderate elevation during early 2022, peaking close to 6.4 billion USD at the end of 2022. Afterwards, liabilities tend to decline, particularly during 2023, with irregular but slightly rising values projected for 2024 and 2025. Despite this, current liabilities remain generally lower in 2023 and beyond relative to the 2022 peak.

Quick ratio

The quick ratio, an indicator of short-term liquidity, echoes these asset and liability movements. It shows a strengthening position from early 2021 to mid-2022, rising from about 1.38 to a high of 1.84. Post mid-2022, the ratio declines progressively, falling below 1.1 in the projections for 2024 and 2025. This sharp decrease suggests a weakening liquidity buffer relative to short-term obligations as quick assets diminish faster than current liabilities.

Overall, the data suggest that the company experienced strong liquidity growth through 2021 and early 2022, followed by a gradual erosion of quick asset base relative to current liabilities in the subsequent years. This pattern may indicate increasing pressure on short-term financial flexibility if trends continue as projected.

Cash Assets Trend

The company's total cash assets exhibited an overall upward movement from March 2021 through mid-2022, rising from approximately 4.6 billion USD to a peak near 9.5 billion USD in June 2022. Following this peak, cash assets generally trended downward, declining steadily through to late 2025 where values hovered around 4.5 billion USD. The decrease from late 2022 onwards suggests a systematic reduction in liquid resources over the subsequent quarters.

Current Liabilities Trend

Current liabilities showed some fluctuation but generally increased from March 2021 to early 2022, moving from roughly 4.6 billion USD to about 6.4 billion USD in December 2021. This was followed by a drop in early 2023 to near 4.8 billion USD, then another increase, oscillating around 5.5 to 6.3 billion USD through the later periods up to September 2025. The pattern indicates periodic adjustments in short-term obligations, with peaks generally preceding reductions.

Cash Ratio Analysis

The cash ratio, calculated as cash assets relative to current liabilities, was relatively stable but showed a decreasing trend over the examined timeframe. Initially close to or above 1.0, it peaked at 1.6 in mid-2022, reflecting strong liquidity relative to liabilities. After mid-2022, the ratio steadily declined to around 0.82 by late 2025, indicating a diminishing buffer of cash to cover current liabilities. This decreasing trend points to a tightening liquidity position despite fluctuations in cash assets and liabilities.

Overall Insights

The data reflects a phase of increasing liquidity up to the middle of 2022, followed by a consistent downward adjustment in cash reserves relative to liabilities. Though liabilities fluctuated, the steady decline in the cash ratio suggests the company may be utilizing cash more intensively, possibly for investments, debt servicing, or operational requirements. Maintaining a cash ratio near or below 1.0 in later periods implies that cash covers current liabilities by a narrower margin, which could affect short-term financial flexibility.