Freeport-McMoRan Inc. (NYSE:FCX)

Debt to Equity Trend

The debt to equity ratio demonstrates a consistent downward trajectory from the first quarter of 2021 through the second quarter of 2025. Starting at 0.9 in March 2021, the metric declines with minor fluctuations, stabilizing around 0.5 in the later periods. This indicates a gradual reduction in the relative amount of debt financing compared to equity, reflecting a strengthening equity base or debt repayment over time.

Debt to Capital Trend

This ratio follows a similar decreasing pattern, moving from 0.47 in March 2021 to approximately 0.34 by mid-2025. The ratio shows slight periodic variations but overall reveals a consistent decline in debt's share within total capital structure, suggesting improving financial stability and potentially lower financial risk.

Debt to Assets Trend

The debt to assets ratio gradually decreases from 0.22 in the first quarter of 2021 to 0.16 by the second quarter of 2025. This trend indicates a lower reliance on debt in financing the company’s asset base, reinforcing the reduction in leverage observed through other debt metrics.

Financial Leverage Trend

Financial leverage shows a moderate decline from 4 in March 2021 to about 3.1 by mid-2025. Despite some short-term fluctuations, the overall decrease suggests improved asset backing relative to equity, which may enhance solvency and reduce financial risk.

Interest Coverage Ratio Trend

The interest coverage ratio has exhibited significant improvement, rising from 7.19 in March 2021 to 24.48 by the second quarter of 2025. Although there are some fluctuations between quarters, the upward trend indicates increasing earnings capacity relative to interest expenses, reflecting enhanced profitability and stronger ability to service debt obligations over time.

The financial data reveals notable trends in the company's debt and equity structure over the analyzed quarterly periods. The total debt has demonstrated variability, showing a moderate increase from the first quarter of 2021 through mid-2022, peaking near the third quarter of 2022. Following this peak, total debt exhibits a general declining pattern with minor fluctuations, reaching a lower level by the second quarter of 2025 compared to earlier peaks.

Stockholders’ equity has displayed a consistent upward trajectory throughout the periods under review. Starting with a base level in early 2021, equity has steadily increased quarter by quarter, indicating accumulation of retained earnings or additional capital infusions. This steady growth in equity suggests strengthening of the company's financial base over time.

The debt to equity ratio reflects these underlying movements in debt and equity. Initially, the ratio shows a declining trend from early 2021, indicating a reduction in leverage relative to equity. There is a noticeable increase in this ratio around mid-2022 coinciding with the rise in total debt, but post this period, the ratio resumes a downward trajectory. By the end of the period in mid-2025, the debt to equity ratio reaches one of its lowest points, suggesting an overall reduction in financial leverage and potentially a more conservative capital structure.

Total Debt

Varied moderately with a peak in late 2022 followed by a gradual decline towards mid-2025.

Stockholders' Equity

Showed continuous growth throughout the periods, indicating strengthening equity base.

Debt to Equity Ratio

Experienced a decreasing trend overall, with a temporary increase around mid-2022, ending at a low point by mid-2025, reflecting reduced leverage against rising equity.

Total debt

The total debt levels exhibited moderate fluctuations over the observation period. Initially, the debt decreased slightly from 9,809 million USD at the end of Q1 2021 to 9,450 million USD by Q4 2021. This was followed by a noticeable increase in 2022, peaking at 11,092 million USD in Q2 2022 before gradually declining again towards the end of the year. In 2023 and early 2024, total debt remained relatively stable around the 9,400 to 9,600 million USD range, with a minor upward adjustment in Q3 2024 reaching 9,679 million USD. The debt then slightly decreased in subsequent periods, ending at 9,251 million USD by Q2 2025. Overall, debt levels show an oscillating pattern but without significant upward or downward trends over the whole period.

Total capital

Total capital generally trended upward throughout the timeframe. Starting at approximately 20,729 million USD in Q1 2021, total capital increased steadily, surpassing 26,000 million USD by late 2022 and maintaining a gradual upward slope thereafter. Variations were minor, with occasional small retracements, but the long-term trajectory suggests capital growth, reaching around 27,459 million USD by mid-2025. This indicates capital expansion likely supported by retained earnings, equity infusions, or other capital-generating activities.

Debt to capital ratio

The debt to capital ratio shows a consistent declining trend across the observed quarters. Starting from 0.47 in early 2021, the ratio fell steadily through subsequent periods, reaching a low of 0.34 by several quarters near the end of the dataset. This decline indicates improving financial leverage, suggesting the company is either reducing its reliance on debt financing relative to its total capital or growing its capital base faster than its debt. The ratio stabilized around 0.35 in the last several quarters, reflecting a more conservative or balanced capital structure.

Overall insights

The data suggests a modest reduction in leverage risk, with the company managing to keep its total debt within a relatively tight range while expanding its total capital base over time. The steady decrease in debt to capital ratio implies an improving capital structure, potentially enhancing financial stability and creditworthiness. The cyclical movements in debt might relate to operational needs or market conditions but do not overshadow the overall trend of capital growth and more balanced leverage.

Total Debt

The total debt exhibited a relatively stable pattern with some fluctuations over the observed periods. Starting around $9.8 billion in early 2021, the debt slightly decreased through the year, reaching approximately $9.45 billion by the end of 2021. In 2022, the debt increased notably, peaking above $11 billion in mid-year, before gradually declining towards approximately $9.4 billion by the year's end. The trend continued into 2023 and 2024 with relatively minor fluctuations, maintaining values mostly below $10 billion, and ending near $9.25 billion by mid-2025. This pattern indicates a conservative approach to managing debt with periodic adjustments likely linked to operational or market conditions.

Total Assets

There was a clear upward trend in total assets over the entire period analyzed. Starting at roughly $43.6 billion in early 2021, total assets steadily increased each quarter, crossing the $50 billion mark in early 2022 and continuing to grow through 2023 and 2024. By mid-2025, total assets reached approximately $56.5 billion. This consistent asset growth suggests ongoing investments and asset accumulation which may reflect expansion efforts or valuation increases in existing holdings.

Debt to Assets Ratio

The debt to assets ratio showed a gradual decline over the period, indicating a strengthening financial position relative to leverage. Beginning at around 0.22 in early 2021, the ratio decreased consistently, moving from 0.21-0.20 range through 2021 and 2022, down to 0.16-0.17 in recent quarters. The decline in this ratio, despite some fluctuations in total debt, is mainly attributable to the more rapid growth in total assets. This trend points to improved solvency and suggests the company has been effectively managing its debt levels relative to its expanding asset base.

Summary of Financial Position Trends

Overall, the data reflects a stable to improving financial leverage position with a steady increase in total assets and controlled debt levels. The decreasing debt to assets ratio alongside asset growth indicates a prudent capital structure management. The company appears to be focusing on asset growth while maintaining or slightly reducing its relative debt levels, which could enhance its creditworthiness and financial flexibility going forward.

Total assets

The total assets show a generally upward trend over the reported periods, increasing from $43,643 million at the end of the first quarter of 2021 to $56,492 million by the second quarter of 2025. Notably, the growth is steady with minor fluctuations, indicating consistent asset accumulation. Periods such as early 2024 and mid-2025 reflect continued expansion, with values surpassing $54 billion and approaching $56.5 billion respectively.

Stockholders’ equity

Stockholders’ equity also exhibits a steady increase throughout the examined timeframe, rising from $10,920 million in March 2021 to $18,208 million in June 2025. This growth suggests a strengthening equity base, reflecting retained earnings, capital contributions, or both. The equity increments between consecutive quarters appear moderate but consistent, supporting a stable financial foundation.

Financial leverage ratio

The financial leverage ratio shows a clear trend of gradual improvement, decreasing from a high of 4.00 in March 2021 to around 3.10 by mid-2025. This decline indicates a reduction in reliance on debt relative to equity over time. Although some minor fluctuations occur, the overall reduction implies strengthening balance sheet resiliency and potentially lower financial risk.

In summary, the company's financial structure over the reported periods reveals a pattern of growth in both assets and equity accompanied by a measured decline in financial leverage. These trends underline an improving financial stability, with increased capitalization and a conservative approach to debt usage.

Earnings before interest and tax (EBIT)

EBIT values exhibit considerable fluctuation over the reporting periods. Initially, there is an upward trajectory from early 2021 through the third quarter of 2021, peaking at 2,489 million USD. This is followed by a decline towards the end of 2021 and a partial recovery in the first quarter of 2022. The subsequent quarters of 2022 show a downward trend, reaching the lowest observed value of 1,015 million USD in the third quarter, before rebounding towards the end of the year. The years 2023 and 2024 reveal oscillations with periods of growth and contraction, though EBIT consistently remains above the lower 2022 troughs. Notably, the latter part of 2024 and into 2025 demonstrates renewed strength with a general upward movement, climaxing at 2,479 million USD in the third quarter of 2025, indicating a recovery or improved operational performance.

Interest expense, net

Interest expenses remain relatively stable across all periods with minor fluctuations. Throughout the timeframe, values hover mostly between 70 and 171 million USD, showing no pronounced upward or downward trend. The interest expense peaks around the first half of 2023, reaching 171 million USD, but subsequently declines and stabilizes near the lower 70s by mid-2025. This consistency suggests controlled debt costs or stable borrowing conditions despite variations in EBIT.

Interest coverage ratio

The interest coverage ratio demonstrates an overall improving trend, signaling enhanced capacity to service interest expenses from operating earnings. Starting at a ratio of 7.19 in March 2021, it increases steadily with some minor oscillations, reaching a peak of 24.48 by the third quarter of 2025. This indicates that EBIT has grown sufficiently relative to interest expenses, improving financial stability and reducing risk associated with debt servicing. Temporarily reduced ratios in early to mid-2023 coincide with lower EBIT figures during the same period, but the ratio quickly recovers, aligning with strengthening EBIT toward the end of 2023 and beyond.

Summary

The data reveals a volatile EBIT performance marked by significant cyclical variations but with a long-term upward tendency culminating in strong operating earnings by 2025. The steady net interest expense combined with rising interest coverage ratios points to an improved financial resilience and efficient management of interest-bearing liabilities. The company’s ability to generate earnings capable of covering interest obligations has generally strengthened, particularly in the last reported periods, which may reflect operational improvements, favorable market conditions, or effective financial strategies.