Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Capital
Debt to Assets
Financial Leverage
Interest Coverage

Freeport-McMoRan Inc., solvency ratios (quarterly data)

	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Debt Ratios
Debt to equity	0.51	0.53	0.51	0.55	0.54	0.56	0.56	0.57	0.59	0.60	0.68	0.71	0.74	0.65	0.68	0.72	0.81	0.90	0.95	1.09	1.11	1.14
Debt to capital	0.34	0.35	0.34	0.36	0.35	0.36	0.36	0.36	0.37	0.38	0.41	0.42	0.43	0.39	0.40	0.42	0.45	0.47	0.49	0.52	0.53	0.53
Debt to assets	0.16	0.17	0.16	0.17	0.17	0.17	0.18	0.18	0.19	0.19	0.21	0.21	0.22	0.20	0.20	0.21	0.21	0.22	0.23	0.24	0.25	0.25
Financial leverage	3.10	3.17	3.12	3.16	3.14	3.19	3.15	3.14	3.14	3.17	3.28	3.34	3.37	3.28	3.44	3.51	3.78	4.00	4.14	4.45	4.49	4.54
Coverage Ratios
Interest coverage	24.48	22.80	22.70	22.42	19.68	14.57	12.69	11.49	9.73	10.53	13.05	13.11	15.65	16.40	13.73	11.72	9.52	7.19	4.03	—	—	—

The financial data reveals several noteworthy trends over the analyzed periods.

Debt to Equity Ratio: The debt to equity ratio demonstrates a clear downward trend from 1.14 in the first quarter of 2020, gradually decreasing to approximately 0.51 by mid-2025. This suggests a consistent reduction in the company's reliance on debt relative to shareholders' equity, indicating deleveraging efforts or increased equity capitalization.
Debt to Capital Ratio: Similarly, the debt to capital ratio decreased from 0.53 in early 2020 to around 0.34 by the second quarter of 2025. While there are minor fluctuations, the overall pattern points to a gradual decline in debt as a proportion of the company's total capital structure.
Debt to Assets Ratio: This ratio shows a modest but steady decline from 0.25 at the beginning of 2020 to roughly 0.16 by mid-2025. This indicates the company is reducing the share of its assets financed through debt, improving asset financing quality and potentially lowering financial risk.
Financial Leverage: Financial leverage, representing assets to equity, decreases from 4.54 in the first quarter of 2020 to around 3.1 by the second quarter of 2025. This reduction aligns with the trends observed in debt ratios, suggesting a strengthening equity base or asset reallocation.
Interest Coverage Ratio: Interest coverage ratio data begins in December 2020 at 4.03 and rises consistently to reach 24.48 by the second quarter of 2025. This substantial improvement indicates enhanced ability to cover interest expenses through operating income, reflecting better profitability or a reduction in interest-bearing liabilities.

Overall, the data indicates a deliberate and sustained effort to reduce leverage and improve the company’s financial stability and risk profile. The rising interest coverage ratio emphasizes improved earnings relative to debt costs, which enhances the financial flexibility and creditworthiness of the entity over the observed time frame.

Debt Ratios

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Coverage Ratios

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Freeport-McMoRan Inc., debt to equity calculation (quarterly data)

	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Selected Financial Data (US$ in millions)
Current portion of debt	338)	495)	41)	769)	768)	769)	766)	35)	37)	49)	1,037)	1,032)	1,038)	1,365)	372)	897)	1,057)	656)	34)	47)	90)	245)
Long-term debt, less current portion	8,913)	8,909)	8,907)	8,910)	8,658)	8,656)	8,656)	9,370)	9,458)	9,586)	9,583)	9,658)	10,054)	8,256)	9,078)	8,768)	8,638)	9,153)	9,677)	9,983)	9,824)	9,829)
Total debt	9,251)	9,404)	8,948)	9,679)	9,426)	9,425)	9,422)	9,405)	9,495)	9,635)	10,620)	10,690)	11,092)	9,621)	9,450)	9,665)	9,695)	9,809)	9,711)	10,030)	9,914)	10,074)

Stockholders’ equity	18,208)	17,688)	17,581)	17,548)	17,404)	16,973)	16,693)	16,459)	16,202)	16,057)	15,555)	14,954)	14,889)	14,866)	13,980)	13,353)	12,011)	10,920)	10,174)	9,236)	8,954)	8,855)
Solvency Ratio
Debt to equity¹	0.51	0.53	0.51	0.55	0.54	0.56	0.56	0.57	0.59	0.60	0.68	0.71	0.74	0.65	0.68	0.72	0.81	0.90	0.95	1.09	1.11	1.14

¹ Q2 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 9,251 ÷ 18,208 = 0.51

Total debt: The total debt shows a fluctuating pattern over the periods. Starting at 10,074 million US dollars in the first quarter of 2020, it experiences slight reductions and fluctuations throughout 2020 and the first half of 2021, declining to 9,450 million by the end of 2021. In 2022, the debt rises again, peaking at 11,092 million in the second quarter before decreasing toward the end of the year. From 2023 onwards, total debt demonstrates a gradual but steady decrease with some minor variability, ending at 9,251 million by the second quarter of 2025.
Stockholders’ equity: Stockholders’ equity shows a consistent upward trend across the entire period. Beginning at 8,855 million US dollars in the first quarter of 2020, it steadily increases each quarter without significant setbacks. By the end of 2021, equity has risen substantially to 13,980 million. This growth continues through 2022 and 2023, reaching 16,693 million by the end of 2023. The upward trend maintains momentum through 2024 and into mid-2025, culminating in 18,208 million by the second quarter of 2025, indicating strengthening equity base over time.
Debt to equity ratio: The debt to equity ratio indicates a consistent improvement in the company's leverage position. Commencing at 1.14 in the first quarter of 2020, this ratio decreases steadily over the subsequent quarters. By the end of 2020, the ratio has fallen below 1.0 and continues declining throughout 2021, reaching a low of 0.56 by the end of that year. While minor fluctuations occur, the general trend is downward, with the ratio hovering around 0.5 to 0.6 from 2023 onwards. This pattern reflects a decrease in relative debt levels compared to equity, suggesting enhanced financial stability and reduced leverage risk over the observed timeframe.

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Freeport-McMoRan Inc., debt to capital calculation (quarterly data)

	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Selected Financial Data (US$ in millions)
Current portion of debt	338)	495)	41)	769)	768)	769)	766)	35)	37)	49)	1,037)	1,032)	1,038)	1,365)	372)	897)	1,057)	656)	34)	47)	90)	245)
Long-term debt, less current portion	8,913)	8,909)	8,907)	8,910)	8,658)	8,656)	8,656)	9,370)	9,458)	9,586)	9,583)	9,658)	10,054)	8,256)	9,078)	8,768)	8,638)	9,153)	9,677)	9,983)	9,824)	9,829)
Total debt	9,251)	9,404)	8,948)	9,679)	9,426)	9,425)	9,422)	9,405)	9,495)	9,635)	10,620)	10,690)	11,092)	9,621)	9,450)	9,665)	9,695)	9,809)	9,711)	10,030)	9,914)	10,074)
Stockholders’ equity	18,208)	17,688)	17,581)	17,548)	17,404)	16,973)	16,693)	16,459)	16,202)	16,057)	15,555)	14,954)	14,889)	14,866)	13,980)	13,353)	12,011)	10,920)	10,174)	9,236)	8,954)	8,855)
Total capital	27,459)	27,092)	26,529)	27,227)	26,830)	26,398)	26,115)	25,864)	25,697)	25,692)	26,175)	25,644)	25,981)	24,487)	23,430)	23,018)	21,706)	20,729)	19,885)	19,266)	18,868)	18,929)
Solvency Ratio
Debt to capital¹	0.34	0.35	0.34	0.36	0.35	0.36	0.36	0.36	0.37	0.38	0.41	0.42	0.43	0.39	0.40	0.42	0.45	0.47	0.49	0.52	0.53	0.53

¹ Q2 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,251 ÷ 27,459 = 0.34

Total Debt: Total debt exhibited a generally stable to slightly declining trend from the first quarter of 2020 through the end of 2021, decreasing from 10,074 million US dollars to a low of 9,450 million US dollars by December 2021. This was followed by a period of increased volatility during 2022, with debt rising to a peak of 11,092 million US dollars in June 2022 before gradually declining thereafter. From early 2023 to mid-2025, total debt showed a modest downward trend with some fluctuations, ending at 9,251 million US dollars in June 2025.
Total Capital: Total capital demonstrated a consistent upward trajectory across the entire period, rising from 18,929 million US dollars at the end of the first quarter of 2020 to 27,459 million US dollars by mid-2025. This steady increase highlights a growth in the company's capital base, with no significant declines observed. The capital growth was relatively smooth, indicating effective capital management and accumulation over the reported timeline.
Debt to Capital Ratio: The debt to capital ratio showed a clear decreasing trend over the reported period, starting at 0.53 in the first quarter of 2020 and falling to 0.34 by mid-2025. This reduction indicates an improving capital structure, with debt representing a progressively smaller portion of the total capital. Notably, the most significant decline occurred between early 2020 and late 2021, when the ratio dropped from 0.53 to 0.40, followed by a more gradual decline afterward. The ratio's reduction despite some fluctuations in total debt suggests the increase in total capital outpaced the growth or fluctuations in debt.

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Freeport-McMoRan Inc., debt to assets calculation (quarterly data)

	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Selected Financial Data (US$ in millions)
Current portion of debt	338)	495)	41)	769)	768)	769)	766)	35)	37)	49)	1,037)	1,032)	1,038)	1,365)	372)	897)	1,057)	656)	34)	47)	90)	245)
Long-term debt, less current portion	8,913)	8,909)	8,907)	8,910)	8,658)	8,656)	8,656)	9,370)	9,458)	9,586)	9,583)	9,658)	10,054)	8,256)	9,078)	8,768)	8,638)	9,153)	9,677)	9,983)	9,824)	9,829)
Total debt	9,251)	9,404)	8,948)	9,679)	9,426)	9,425)	9,422)	9,405)	9,495)	9,635)	10,620)	10,690)	11,092)	9,621)	9,450)	9,665)	9,695)	9,809)	9,711)	10,030)	9,914)	10,074)

Total assets	56,492)	56,022)	54,848)	55,400)	54,635)	54,198)	52,506)	51,648)	50,907)	50,909)	51,093)	49,927)	50,113)	48,832)	48,022)	46,917)	45,436)	43,643)	42,144)	41,099)	40,230)	40,219)
Solvency Ratio
Debt to assets¹	0.16	0.17	0.16	0.17	0.17	0.17	0.18	0.18	0.19	0.19	0.21	0.21	0.22	0.20	0.20	0.21	0.21	0.22	0.23	0.24	0.25	0.25

¹ Q2 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 9,251 ÷ 56,492 = 0.16

The analysis of the quarterly financial data reveals several key trends regarding the company's indebtedness and asset base over the observed periods.

Total Debt: Total debt showed a moderate decline from March 2020 through December 2021, decreasing from 10,074 million US dollars to 9,450 million US dollars. This decline was temporarily reversed in 2022, with debt levels increasing to a peak of 11,092 million US dollars in June 2022, before gradually decreasing again. From March 2023 onward, total debt progressively declined, reaching a low of 9,251 million US dollars by December 2025. This overall pattern suggests an initial effort to reduce debt, followed by a short-term increase, and a subsequent sustained reduction in indebtedness.
Total Assets: Total assets exhibited a generally upward trajectory over the entire period. Starting at 40,219 million US dollars in March 2020, assets increased steadily to 54,022 million US dollars by June 2025, with slight fluctuations in certain quarters such as a minor dip between June 2022 and September 2022. The growth of total assets indicates expansion or accumulation of resources, supporting potential operational or strategic growth.
Debt to Assets Ratio: The debt to assets ratio demonstrated a consistent downward trend, declining from 0.25 in March 2020 to 0.16 by June 2025, with minor short-term fluctuations. This continuous reduction highlights an improving balance sheet leverage position, reflecting either effective management of debt levels relative to asset growth, improving financial stability, or both. The ratio dropped more noticeably following the peak in total debt during mid-2022, benefiting from an increase in total assets and a subsequent decrease in total debt.

In summary, the data indicates prudent debt management combined with asset growth, leading to a stronger equity position over the periods analyzed. The consistent reduction in the debt to assets ratio underscores enhanced financial resilience and reduced leverage risk.

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Freeport-McMoRan Inc., financial leverage calculation (quarterly data)

	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Selected Financial Data (US$ in millions)
Total assets	56,492)	56,022)	54,848)	55,400)	54,635)	54,198)	52,506)	51,648)	50,907)	50,909)	51,093)	49,927)	50,113)	48,832)	48,022)	46,917)	45,436)	43,643)	42,144)	41,099)	40,230)	40,219)
Stockholders’ equity	18,208)	17,688)	17,581)	17,548)	17,404)	16,973)	16,693)	16,459)	16,202)	16,057)	15,555)	14,954)	14,889)	14,866)	13,980)	13,353)	12,011)	10,920)	10,174)	9,236)	8,954)	8,855)
Solvency Ratio
Financial leverage¹	3.10	3.17	3.12	3.16	3.14	3.19	3.15	3.14	3.14	3.17	3.28	3.34	3.37	3.28	3.44	3.51	3.78	4.00	4.14	4.45	4.49	4.54

¹ Q2 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 56,492 ÷ 18,208 = 3.10

Total Assets: Total assets exhibited a steady upward trend throughout the periods under review. Beginning at approximately US$40,219 million in March 2020, total assets increased consistently each quarter, reaching around US$56,492 million by June 2025. Notably, the growth in assets remained relatively smooth without significant fluctuations, indicating ongoing asset accumulation or valuation increases over time.
Stockholders' Equity: Stockholders’ equity also showed a consistent positive trajectory during the period. Starting from about US$8,855 million in March 2020, equity increased progressively to reach US$18,208 million by June 2025. The growth rate in equity was fairly steady, reflecting either retained earnings accumulation or equity injections, and contributed to strengthening the company’s capital base.
Financial Leverage: The financial leverage ratio demonstrated a clear declining trend from 4.54 in March 2020 to a low near 3.1 by mid-2025. This reduction suggests a gradual decrease in the company’s reliance on debt relative to equity. Between late 2020 and early 2021, the ratio experienced its most pronounced drop, moving from about 4.14 to 3.44, indicating significant deleveraging during this period. Afterward, the ratio stabilized somewhat around the low 3.1–3.2 range, implying a more conservative capital structure maintained thereafter.
Overall Trends and Insights: The data reveals a strong and consistent growth in the balance sheet size through increasing total assets and stockholders’ equity over the nearly five-year timeframe. Concurrently, the significant decline in financial leverage reflects a strategic effort to reduce debt exposure and strengthen equity, enhancing financial stability. This combination of asset growth and deleveraging points to an improving financial position, potentially reducing risk and increasing capacity for future investments or absorptive shocks.

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Freeport-McMoRan Inc., interest coverage calculation (quarterly data)

	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders	772)	352)	274)	526)	616)	473)	388)	454)	343)	663)	697)	404)	840)	1,527)	1,106)	1,399)	1,083)	718)	708)	329)	53)	(491)
Add: Net income attributable to noncontrolling interest	775)	441)	447)	710)	664)	689)	619)	510)	388)	386)	280)	156)	198)	377)	252)	324)	248)	235)	150)	103)	71)	(58)
Add: Income tax expense	850)	500)	520)	737)	754)	512)	724)	508)	539)	499)	557)	315)	571)	824)	625)	628)	603)	443)	611)	297)	96)	(60)
Add: Interest expense, net	82)	70)	70)	72)	88)	89)	97)	96)	171)	151)	137)	140)	156)	127)	171)	138)	148)	145)	236)	120)	115)	127)
Earnings before interest and tax (EBIT)	2,479)	1,363)	1,311)	2,045)	2,122)	1,763)	1,828)	1,568)	1,441)	1,699)	1,671)	1,015)	1,765)	2,855)	2,154)	2,489)	2,082)	1,541)	1,705)	849)	335)	(482)
Solvency Ratio
Interest coverage¹	24.48	22.80	22.70	22.42	19.68	14.57	12.69	11.49	9.73	10.53	13.05	13.11	15.65	16.40	13.73	11.72	9.52	7.19	4.03	—	—	—

¹ Q2 2025 Calculation
Interest coverage = (EBIT_{Q2 2025} + EBIT_{Q1 2025} + EBIT_{Q4 2024} + EBIT_{Q3 2024}) ÷ (Interest expense_{Q2 2025} + Interest expense_{Q1 2025} + Interest expense_{Q4 2024} + Interest expense_{Q3 2024})
= (2,479 + 1,363 + 1,311 + 2,045) ÷ (82 + 70 + 70 + 72) = 24.48

Earnings before interest and tax (EBIT): EBIT exhibited a significant recovery and growth trend starting from a negative value of -482 million USD in the first quarter of 2020. The figures turned positive by mid-2020 and demonstrated considerable fluctuation with peaks and troughs across the quarters. Notably, peak EBIT reached above 2,400 million USD in the fourth quarter of 2021. However, towards the end of 2022 and beginning of 2023, EBIT experienced a decline, dropping to levels around 1,400 to 1,700 million USD. Subsequently, a gradual upward trend was observed again in 2023 and into 2024, stabilizing mostly above 1,700 million USD, with intermittent increases reaching up to approximately 2,479 million USD in the last available quarter of 2025.
Interest expense, net: Net interest expense showed relative stability with minor fluctuations throughout the period. Starting at 127 million USD in the first quarter of 2020, the expense saw slight decreases and increases, generally ranging within 70 to 170 million USD. The values slightly decreased over time with some quarters reporting values close to 70 million USD, particularly in the years 2024 and 2025. This suggests a moderate reduction in net interest costs or improved debt management in the later periods.
Interest coverage ratio: The interest coverage ratio was not available in the initial quarters of 2020 but began to be reported from the third quarter of 2020. From that point, the ratio displayed a strong upward trend, increasing from 4.03 to values consistently above 10 by early 2021. The ratio peaked impressively above 22 in the mid to late 2024 period and maintained this high level through 2025. This trend indicates a significant improvement in the company's ability to service its interest expenses through operating earnings, reflecting enhanced financial stability and lower risk related to debt obligations over the analyzed period.

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Freeport-McMoRan Inc. (NYSE:FCX)

Analysis of Solvency Ratios
Quarterly Data

Solvency Ratios (Summary)

Debt Ratios

Coverage Ratios

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Freeport-McMoRan Inc. (NYSE:FCX)

Analysis of Solvency Ratios Quarterly Data

Solvency Ratios (Summary)

Debt Ratios

Coverage Ratios

Debt to Equity

Debt to Capital

Debt to Assets

Financial Leverage

Interest Coverage

Analysis of Solvency Ratios
Quarterly Data