Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Freeport-McMoRan Inc., solvency ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Freeport-McMoRan Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Freeport-McMoRan Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Freeport-McMoRan Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Freeport-McMoRan Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Freeport-McMoRan Inc. debt to assets ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Freeport-McMoRan Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Freeport-McMoRan Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Freeport-McMoRan Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Freeport-McMoRan Inc. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity
Freeport-McMoRan Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt | 766) | 1,037) | 372) | 34) | 5) | |
| Long-term debt, less current portion | 8,656) | 9,583) | 9,078) | 9,677) | 9,821) | |
| Total debt | 9,422) | 10,620) | 9,450) | 9,711) | 9,826) | |
| Stockholders’ equity | 16,693) | 15,555) | 13,980) | 10,174) | 9,298) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.56 | 0.68 | 0.68 | 0.95 | 1.06 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Newmont Corp. | 0.33 | 0.32 | 0.29 | 0.29 | 0.32 | |
| Debt to Equity, Sector | ||||||
| Metals & Mining | 0.41 | 0.48 | 0.44 | 0.49 | 0.54 | |
| Debt to Equity, Industry | ||||||
| Materials | 0.45 | 0.46 | 0.38 | 0.41 | 0.38 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 9,422 ÷ 16,693 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Freeport-McMoRan Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity (including Operating Lease Liability)
Freeport-McMoRan Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt | 766) | 1,037) | 372) | 34) | 5) | |
| Long-term debt, less current portion | 8,656) | 9,583) | 9,078) | 9,677) | 9,821) | |
| Total debt | 9,422) | 10,620) | 9,450) | 9,711) | 9,826) | |
| Short-term operating lease liabilities | 84) | 38) | 38) | 38) | 44) | |
| Long-term operating lease liabilities | 347) | 294) | 281) | 190) | 204) | |
| Total debt (including operating lease liability) | 9,853) | 10,952) | 9,769) | 9,939) | 10,074) | |
| Stockholders’ equity | 16,693) | 15,555) | 13,980) | 10,174) | 9,298) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.59 | 0.70 | 0.70 | 0.98 | 1.08 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Newmont Corp. | 0.33 | 0.32 | 0.29 | 0.30 | 0.32 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Metals & Mining | 0.42 | 0.49 | 0.45 | 0.50 | 0.55 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Materials | 0.46 | 0.48 | 0.39 | 0.42 | 0.40 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 9,853 ÷ 16,693 = 0.59
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Freeport-McMoRan Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital
Freeport-McMoRan Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt | 766) | 1,037) | 372) | 34) | 5) | |
| Long-term debt, less current portion | 8,656) | 9,583) | 9,078) | 9,677) | 9,821) | |
| Total debt | 9,422) | 10,620) | 9,450) | 9,711) | 9,826) | |
| Stockholders’ equity | 16,693) | 15,555) | 13,980) | 10,174) | 9,298) | |
| Total capital | 26,115) | 26,175) | 23,430) | 19,885) | 19,124) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.36 | 0.41 | 0.40 | 0.49 | 0.51 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Newmont Corp. | 0.25 | 0.24 | 0.22 | 0.23 | 0.24 | |
| Debt to Capital, Sector | ||||||
| Metals & Mining | 0.29 | 0.32 | 0.30 | 0.33 | 0.35 | |
| Debt to Capital, Industry | ||||||
| Materials | 0.31 | 0.32 | 0.27 | 0.29 | 0.28 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,422 ÷ 26,115 = 0.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Freeport-McMoRan Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital (including Operating Lease Liability)
Freeport-McMoRan Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt | 766) | 1,037) | 372) | 34) | 5) | |
| Long-term debt, less current portion | 8,656) | 9,583) | 9,078) | 9,677) | 9,821) | |
| Total debt | 9,422) | 10,620) | 9,450) | 9,711) | 9,826) | |
| Short-term operating lease liabilities | 84) | 38) | 38) | 38) | 44) | |
| Long-term operating lease liabilities | 347) | 294) | 281) | 190) | 204) | |
| Total debt (including operating lease liability) | 9,853) | 10,952) | 9,769) | 9,939) | 10,074) | |
| Stockholders’ equity | 16,693) | 15,555) | 13,980) | 10,174) | 9,298) | |
| Total capital (including operating lease liability) | 26,546) | 26,507) | 23,749) | 20,113) | 19,372) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.37 | 0.41 | 0.41 | 0.49 | 0.52 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Newmont Corp. | 0.25 | 0.24 | 0.23 | 0.23 | 0.24 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Metals & Mining | 0.30 | 0.33 | 0.31 | 0.34 | 0.36 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Materials | 0.32 | 0.32 | 0.28 | 0.30 | 0.29 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,853 ÷ 26,546 = 0.37
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Freeport-McMoRan Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Assets
Freeport-McMoRan Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt | 766) | 1,037) | 372) | 34) | 5) | |
| Long-term debt, less current portion | 8,656) | 9,583) | 9,078) | 9,677) | 9,821) | |
| Total debt | 9,422) | 10,620) | 9,450) | 9,711) | 9,826) | |
| Total assets | 52,506) | 51,093) | 48,022) | 42,144) | 40,809) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.18 | 0.21 | 0.20 | 0.23 | 0.24 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Newmont Corp. | 0.17 | 0.16 | 0.16 | 0.16 | 0.17 | |
| Debt to Assets, Sector | ||||||
| Metals & Mining | 0.17 | 0.19 | 0.18 | 0.20 | 0.21 | |
| Debt to Assets, Industry | ||||||
| Materials | 0.20 | 0.21 | 0.18 | 0.19 | 0.18 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 9,422 ÷ 52,506 = 0.18
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Freeport-McMoRan Inc. debt to assets ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Assets (including Operating Lease Liability)
Freeport-McMoRan Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of debt | 766) | 1,037) | 372) | 34) | 5) | |
| Long-term debt, less current portion | 8,656) | 9,583) | 9,078) | 9,677) | 9,821) | |
| Total debt | 9,422) | 10,620) | 9,450) | 9,711) | 9,826) | |
| Short-term operating lease liabilities | 84) | 38) | 38) | 38) | 44) | |
| Long-term operating lease liabilities | 347) | 294) | 281) | 190) | 204) | |
| Total debt (including operating lease liability) | 9,853) | 10,952) | 9,769) | 9,939) | 10,074) | |
| Total assets | 52,506) | 51,093) | 48,022) | 42,144) | 40,809) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.19 | 0.21 | 0.20 | 0.24 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Newmont Corp. | 0.17 | 0.16 | 0.16 | 0.16 | 0.17 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Metals & Mining | 0.18 | 0.19 | 0.18 | 0.20 | 0.21 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Materials | 0.21 | 0.21 | 0.18 | 0.20 | 0.19 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,853 ÷ 52,506 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Freeport-McMoRan Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Financial Leverage
Freeport-McMoRan Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 52,506) | 51,093) | 48,022) | 42,144) | 40,809) | |
| Stockholders’ equity | 16,693) | 15,555) | 13,980) | 10,174) | 9,298) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.15 | 3.28 | 3.44 | 4.14 | 4.39 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Newmont Corp. | 1.91 | 1.99 | 1.84 | 1.80 | 1.87 | |
| Financial Leverage, Sector | ||||||
| Metals & Mining | 2.36 | 2.57 | 2.46 | 2.52 | 2.63 | |
| Financial Leverage, Industry | ||||||
| Materials | 2.21 | 2.26 | 2.13 | 2.13 | 2.10 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 52,506 ÷ 16,693 = 3.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Freeport-McMoRan Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Freeport-McMoRan Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | 1,848) | 3,468) | 4,306) | 599) | (239) | |
| Add: Net income attributable to noncontrolling interest | 1,903) | 1,011) | 1,059) | 266) | 50) | |
| Less: Net gain from discontinued operations | —) | —) | —) | —) | 3) | |
| Add: Income tax expense | 2,270) | 2,267) | 2,299) | 944) | 510) | |
| Add: Interest expense, net | 515) | 560) | 602) | 598) | 620) | |
| Earnings before interest and tax (EBIT) | 6,536) | 7,306) | 8,266) | 2,407) | 938) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 12.69 | 13.05 | 13.73 | 4.03 | 1.51 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Newmont Corp. | -7.10 | 1.25 | 5.65 | 11.82 | 13.58 | |
| Interest Coverage, Sector | ||||||
| Metals & Mining | 6.35 | 9.64 | 11.20 | 6.67 | 5.46 | |
| Interest Coverage, Industry | ||||||
| Materials | 11.57 | 13.94 | 15.26 | 9.00 | 7.67 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,536 ÷ 515 = 12.69
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Freeport-McMoRan Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Freeport-McMoRan Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common stockholders | 1,848) | 3,468) | 4,306) | 599) | (239) | |
| Add: Net income attributable to noncontrolling interest | 1,903) | 1,011) | 1,059) | 266) | 50) | |
| Less: Net gain from discontinued operations | —) | —) | —) | —) | 3) | |
| Add: Income tax expense | 2,270) | 2,267) | 2,299) | 944) | 510) | |
| Add: Interest expense, net | 515) | 560) | 602) | 598) | 620) | |
| Earnings before interest and tax (EBIT) | 6,536) | 7,306) | 8,266) | 2,407) | 938) | |
| Add: Operating lease costs | 48) | 46) | 104) | 116) | 134) | |
| Earnings before fixed charges and tax | 6,584) | 7,352) | 8,370) | 2,523) | 1,072) | |
| Interest expense, net | 515) | 560) | 602) | 598) | 620) | |
| Operating lease costs | 48) | 46) | 104) | 116) | 134) | |
| Fixed charges | 563) | 606) | 706) | 714) | 754) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 11.69 | 12.13 | 11.86 | 3.53 | 1.42 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Newmont Corp. | -6.40 | 1.22 | 5.32 | 11.13 | 12.73 | |
| Fixed Charge Coverage, Sector | ||||||
| Metals & Mining | 5.89 | 8.90 | 9.93 | 5.93 | 4.81 | |
| Fixed Charge Coverage, Industry | ||||||
| Materials | 9.08 | 10.45 | 10.86 | 6.54 | 5.49 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,584 ÷ 563 = 11.69
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Freeport-McMoRan Inc. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |