Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
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Solvency Ratios (Summary)
Freeport-McMoRan Inc., solvency ratios (quarterly data)
Based on: 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).
The solvency profile exhibits a consistent trend of deleveraging and strengthening of the balance sheet from March 2022 through March 2026. A general reduction in debt relative to equity, capital, and assets is observable, indicating a strategic shift toward a more conservative capital structure and reduced financial risk.
- Debt to Equity and Capital Ratios
- A peak in leverage occurred in June 2022, with the debt-to-equity ratio reaching 0.74 and the debt-to-capital ratio hitting 0.43. Following this peak, both metrics entered a sustained downward trajectory. By March 2026, the debt-to-equity ratio declined to 0.48 and the debt-to-capital ratio settled at 0.33. The inclusion of operating lease liabilities shows a nearly identical trend, although a slight uptick was noted in late 2025 before stabilizing.
- Asset-Based Solvency and Leverage
- The debt-to-assets ratio decreased from a high of 0.22 in June 2022 to a stable 0.16 by the end of the period. This is complemented by a decline in the financial leverage ratio, which moved from a peak of 3.37 in June 2022 to 3.02 by March 2026, suggesting a reduced reliance on borrowed funds to finance the asset base.
- Interest Coverage and Debt Servicing
- The interest coverage ratio experienced significant volatility, characterized by a contraction during 2023, where it reached a low of 9.73 in June 2023. This was followed by a robust recovery and expansion phase, peaking at 24.48 in June 2025. While the ratio moderated to 18.24 by March 2026, it remains substantially higher than the levels observed during the 2023 dip, indicating a significantly improved capacity to meet interest obligations from operating profits.
Debt Ratios
Coverage Ratios
Debt to Equity
Freeport-McMoRan Inc., debt to equity calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
A systematic reduction in financial leverage is evident over the analyzed period, characterized by a strengthening solvency position and a shift toward a more equity-heavy capital structure.
- Total Debt Trends
- Total debt experienced an initial increase, peaking at 11,092 million US dollars in June 2022. Following this peak, a gradual downward trend occurred, with debt levels stabilizing between 9,200 million and 9,600 million US dollars for the remainder of the period, ending at 9,414 million US dollars in March 2026.
- Stockholders' Equity Growth
- A consistent and uninterrupted upward trajectory is observed in stockholders' equity. The value rose from 14,866 million US dollars in March 2022 to 19,505 million US dollars by March 2026, indicating a steady accumulation of retained earnings or capital contributions.
- Debt to Equity Ratio Analysis
- The debt to equity ratio exhibits a long-term decline, decreasing from 0.65 in March 2022 to 0.48 in March 2026. Although a temporary peak of 0.74 was reached in June 2022, the subsequent decline reflects a reduction in financial risk. The convergence toward 0.48 suggests an improved capacity to cover obligations using equity, driven primarily by the growth in the equity base combined with the stabilization of total debt.
Debt to Equity (including Operating Lease Liability)
Freeport-McMoRan Inc., debt to equity (including operating lease liability) calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
Analysis of the solvency metrics indicates a general improvement in the capital structure from March 2022 through March 2026. The strengthening of the balance sheet is characterized by a consistent increase in equity coupled with a controlled level of total debt, leading to an overall reduction in the debt-to-equity ratio.
- Debt to Equity Ratio Trend
- The ratio experienced an initial spike to 0.74 in June 2022, followed by a sustained downward trajectory. A significant low of 0.50 was reached in September 2025, representing a marked improvement in solvency. While a slight increase occurred toward the end of the period, closing at 0.53 in March 2026, the overall trend remains substantially lower than the 2022 baseline.
- Stockholders' Equity Expansion
- Equity demonstrated consistent growth throughout the analyzed period, rising from 14,866 million US dollars in March 2022 to 19,505 million US dollars by March 2026. This continuous accumulation of equity has served as the primary driver for the improved solvency ratios, effectively reducing the proportion of debt relative to the company's net assets.
- Total Debt Dynamics
- Total debt, including operating lease liabilities, exhibited more volatility than equity. After an initial increase to 11,092 million US dollars in June 2022, debt levels generally trended downward, reaching a low of 8,948 million US dollars in December 2024. A subsequent increase is observed in the final year, with debt climbing to 10,401 million US dollars by March 2026, although this remains below the peak seen in mid-2022.
Debt to Capital
Freeport-McMoRan Inc., debt to capital calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
The solvency profile of the entity exhibits a consistent strengthening trend from March 2022 through March 2026, characterized by a gradual reduction in the proportion of debt relative to total capital.
- Debt to Capital Ratio Analysis
- The debt to capital ratio reached a peak of 0.43 in June 2022 before initiating a sustained downward trajectory. Following this peak, the ratio declined steadily, reaching 0.36 by December 2023 and further stabilizing at 0.33 by March 2026. This trend indicates a systematic reduction in financial leverage and an improved solvency position over the four-year period.
- Total Debt Trends
- Total debt levels experienced initial volatility, rising from 9,621 million USD in March 2022 to a maximum of 11,092 million USD in June 2022. Subsequently, debt levels retreated and remained relatively stable, fluctuating within a range between approximately 8,948 million USD and 9,679 million USD. The lack of significant debt expansion since mid-2022 suggests a controlled approach to borrowing.
- Total Capital Growth
- Total capital showed a persistent upward trend, growing from 24,487 million USD in March 2022 to 28,919 million USD by March 2026. The expansion of the capital base, occurring simultaneously with stabilized debt levels, served as the primary catalyst for the decline in the debt to capital ratio, reflecting an increase in equity or other non-debt capital components.
Debt to Capital (including Operating Lease Liability)
Freeport-McMoRan Inc., debt to capital (including operating lease liability) calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
The solvency profile demonstrates a general improvement in leverage relative to the total capital base over the period from March 2022 to March 2026. While total debt experienced early volatility, the consistent expansion of total capital has led to a reduction in the overall debt-to-capital ratio, suggesting a strengthened long-term financial position.
- Debt to Capital Ratio Trend
- The ratio experienced an initial increase, peaking at 0.43 in June 2022. Subsequently, a sustained downward trend was observed, with the ratio reaching a minimum of 0.33 in September 2025. By March 2026, the ratio stabilized at 0.35, reflecting a decrease in the proportion of debt used to finance the company's capital structure compared to the start of the period.
- Total Debt Dynamics
- Total debt, including operating lease liabilities, rose from 9,621 million US$ in March 2022 to a peak of 11,092 million US$ in June 2022. For the majority of 2023 and 2024, debt levels remained relatively stable, fluctuating between 9,251 million and 9,679 million US$. An upward movement occurred toward the end of the series, with debt increasing to 10,401 million US$ by March 2026.
- Total Capital Expansion
- A consistent growth pattern is observed in total capital, which increased from 24,487 million US$ in March 2022 to 29,906 million US$ in March 2026. This steady expansion of the capital base served as the primary driver for the decline in the debt-to-capital ratio, as the growth in total capital outpaced the fluctuations in total debt.
Debt to Assets
Freeport-McMoRan Inc., debt to assets calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
The solvency profile exhibits a consistent trend toward deleveraging relative to the asset base between March 2022 and March 2026. A gradual reduction in the debt-to-assets ratio indicates a strengthening of the balance sheet and a decrease in financial leverage over the analyzed period.
- Total Asset Expansion
- A steady upward trajectory in total assets is observed, increasing from 48,832 million US dollars in March 2022 to 58,840 million US dollars by March 2026. This continuous growth suggests a consistent expansion of the company's resource base.
- Debt Level Dynamics
- Total debt experienced an initial increase, peaking at 11,092 million US dollars in June 2022. Following this peak, debt levels entered a period of stabilization, fluctuating generally between 8,948 million and 9,679 million US dollars, and concluding at 9,414 million US dollars in March 2026.
- Debt to Assets Ratio Trend
- The debt-to-assets ratio reached a peak of 0.22 in June 2022 before initiating a sustained decline. The ratio improved to 0.16 by December 2024 and remained stable at this level through March 2026. This downward trend is driven by the divergence between a growing asset base and stabilized debt obligations, resulting in a reduced proportional reliance on borrowed capital to fund assets.
Debt to Assets (including Operating Lease Liability)
Freeport-McMoRan Inc., debt to assets (including operating lease liability) calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
The solvency profile of the organization demonstrates a sustained period of deleveraging and asset expansion, resulting in a generally improved debt-to-asset position over the analyzed timeframe.
- Total Debt Dynamics
- Total debt, including operating lease liabilities, experienced an initial peak of 11,092 million USD in June 2022. Following this peak, a gradual reduction occurred, with debt levels stabilizing between 9,400 million USD and 9,600 million USD throughout 2023 and the first half of 2024. A periodic low of 8,948 million USD was recorded in December 2024, before an upward trend emerged in late 2025 and early 2026, concluding at 10,401 million USD.
- Asset Base Growth
- A consistent upward trajectory is observed in total assets, which grew from 48,832 million USD in March 2022 to 58,840 million USD by March 31, 2026. This steady growth in the asset base provided a significant buffer, facilitating a reduction in the overall leverage ratio even during periods where debt levels remained stagnant or increased slightly.
- Debt to Assets Ratio Trends
- The debt to assets ratio peaked at 0.22 in June 2022, subsequently entering a downward trend. The ratio reached a minimum of 0.16 between December 2024 and September 2025, indicating an improvement in the company's solvency and a lower reliance on debt to fund assets. In the final two quarters of the period, the ratio adjusted upward to 0.18, reflecting the increase in total debt liabilities relative to the continuing growth of total assets.
Financial Leverage
Freeport-McMoRan Inc., financial leverage calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
A consistent expansion of the balance sheet is observed alongside a gradual reduction in financial leverage over the analyzed period. Total assets rose from US$ 48,832 million in March 2022 to US$ 58,840 million by March 2026, indicating a steady growth in the scale of operations.
- Asset and Equity Expansion
- Total assets demonstrated a sustained increase throughout the period. This growth was mirrored by stockholders' equity, which climbed from US$ 14,866 million in March 2022 to US$ 19,505 million by March 2026. The increase in equity suggests a strengthening of the capital base, which served as a primary driver for the overall expansion of the balance sheet.
- Financial Leverage Trajectory
- The financial leverage ratio exhibited an initial peak of 3.37 in June 2022, followed by a general downward trend. By March 2026, the ratio decreased to 3.02. This progression reflects a reduction in the reliance on debt relative to equity to fund asset acquisition and operations.
- Leverage Stability and Final Decline
- A period of relative stability was observed between March 2023 and December 2024, where the leverage ratio fluctuated minimally between 3.12 and 3.19. A subsequent decline occurred between June 2025 and March 2026, culminating in the period's lowest leverage ratio of 3.02, indicating an improved solvency profile.
Interest Coverage
Freeport-McMoRan Inc., interest coverage calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= ( + + + )
÷ ( + + + )
=
The interest coverage ratio exhibits a cyclical pattern characterized by an initial contraction, a period of significant expansion, and a subsequent moderate normalization. Solvency remains robust throughout the analyzed timeframe, with the ratio consistently remaining well above critical thresholds, indicating a strong capacity to meet interest obligations from operating profits.
- Earnings Before Interest and Tax (EBIT)
- Operating earnings demonstrate considerable quarterly volatility. A peak of US$ 2,855 million in March 2022 was followed by a decline to US$ 1,015 million by September 2022. Recovery patterns emerged through 2023 and 2024, leading to a peak of US$ 2,479 million in June 2025. A sharp temporary contraction is noted in December 2025, where EBIT fell to US$ 877 million, before rebounding to US$ 2,154 million by March 2026.
- Net Interest Expenses
- Net interest expenses reached a peak of US$ 171 million in June 2023. A marked downward trend followed, with expenses decreasing to a low of US$ 70 million between December 2024 and March 2025, suggesting either debt repayment or more favorable financing terms. A slight upward trajectory is observed in the final quarters, with expenses rising to US$ 114 million by March 2026.
- Interest Coverage Ratio Analysis
- The interest coverage ratio declined from 16.40 in March 2022 to a period low of 9.73 in June 2023. This trend reversed sharply starting in September 2023, driven by the synergy of stabilizing EBIT and reduced net interest costs. The ratio reached its maximum value of 24.48 in June 2025, reflecting an optimized solvency position. The period concludes with a moderate decline, stabilizing at 18.24 by March 2026.