Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Net Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Freeport-McMoRan Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of long-term investment activity ratios reveals generally declining efficiency in asset utilization between 2021 and 2025. While some ratios show slight improvements in certain periods, the overall trend suggests a weakening ability to generate revenue from invested capital.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased from 0.76 in 2021 to 0.66 in 2023, indicating a reduced ability to generate sales from fixed assets. A minor recovery to 0.68 was observed in 2024, but the ratio concluded the period at 0.66 in 2025, remaining below the 2021 level. This suggests potential inefficiencies in fixed asset management or a shift towards less capital-intensive revenue generation.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- A similar pattern is evident when including operating leases and right-of-use assets in the calculation. The ratio declined from 0.75 in 2021 to 0.64 in 2025, mirroring the trend observed in the standard net fixed asset turnover. This suggests that the inclusion of these lease obligations does not significantly alter the overall assessment of fixed asset utilization efficiency. The ratio experienced a slight increase to 0.66 in 2024 before decreasing again.
- Total Asset Turnover
- The total asset turnover ratio exhibited a consistent decline from 0.48 in 2021 to 0.44 in 2022, remaining at that level in 2023. A modest increase to 0.46 was noted in 2024, but the ratio finished at 0.45 in 2025. This indicates a decreasing ability to generate sales from all assets, potentially due to an increase in asset holdings without a corresponding increase in revenue.
- Equity Turnover
- The equity turnover ratio decreased from 1.63 in 2021 to 1.37 in both 2023 and 2025, signifying a reduced ability to generate sales from shareholder equity. A slight improvement to 1.45 was observed in 2024, but the ratio ultimately returned to the 2023 level. This could indicate a less effective utilization of equity financing to drive revenue.
In summary, the observed trends across these ratios suggest a gradual decline in the efficiency with which assets and equity are utilized to generate revenue. While minor fluctuations occur, the overall direction points towards a need for potential operational improvements or a reassessment of investment strategies.
Net Fixed Asset Turnover
Freeport-McMoRan Inc., net fixed asset turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant, equipment and mine development costs, net, excluding operating lease right-of-use assets
= ÷ =
The net fixed asset turnover ratio decreased over the observed period, exhibiting a generally declining trend despite a slight recovery in the most recent year. Revenues demonstrated a moderate increase overall, while the value of property, plant, and equipment consistently rose.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio began at 0.76 in 2021 and decreased to 0.66 in 2023. This indicates a diminishing ability to generate revenue from its fixed assets. A slight increase to 0.68 was noted in 2024, but the ratio remained at 0.66 in 2025, suggesting the improvement was not sustained.
- Revenue Trend
- Revenues experienced a minor decrease from US$22,845 million in 2021 to US$22,780 million in 2022. Subsequently, revenues increased to US$22,855 million in 2023, then to US$25,455 million in 2024, and further to US$25,915 million in 2025. This represents an overall positive trend in revenue generation.
- Fixed Asset Investment
- Property, plant, and equipment, net of operating lease right-of-use assets, increased steadily throughout the period. Beginning at US$30,068 million in 2021, it rose to US$32,285 million in 2022, US$34,847 million in 2023, US$37,661 million in 2024, and US$39,531 million in 2025. This consistent investment in fixed assets did not translate into a corresponding increase in revenue generation efficiency, as evidenced by the net fixed asset turnover ratio.
- Combined Effect
- The combination of increasing fixed assets and fluctuating revenues resulted in the observed decline in the net fixed asset turnover ratio. While revenue increased in the later years, the rate of increase in fixed assets was greater, leading to a lower ratio. The stabilization of the ratio in 2025 suggests a potential leveling off of investment relative to revenue, but further monitoring is needed to confirm this trend.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Freeport-McMoRan Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant, equipment and mine development costs, net, excluding operating lease right-of-use assets (including operating lease, right-of-use asset)
= ÷ =
The analysis reveals a complex relationship between revenues and net fixed assets over the five-year period. While revenues demonstrate a generally increasing trend, the net fixed asset turnover ratio exhibits a declining pattern, followed by a period of relative stabilization.
- Revenue Trend
- Revenues experienced a slight decrease from 2021 to 2022, moving from US$22,845 million to US$22,780 million. Subsequently, revenues increased steadily, reaching US$25,455 million in 2024 and further growing to US$25,915 million in 2025. This indicates a positive trajectory in the company’s ability to generate sales.
- Net Fixed Asset Investment
- Net fixed assets, inclusive of operating lease right-of-use assets, consistently increased throughout the period. Starting at US$30,345 million in 2021, they rose to US$32,627 million in 2022, US$35,295 million in 2023, US$38,514 million in 2024, and culminated at US$40,736 million in 2025. This demonstrates a continuous investment in property, plant, and equipment.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio decreased from 0.75 in 2021 to 0.70 in 2022, and further declined to 0.65 in 2023. A slight recovery to 0.66 was observed in 2024, but the ratio decreased again to 0.64 in 2025. This suggests that the company is becoming less efficient in generating revenue from its fixed asset base. The increasing investment in fixed assets is not translating into a proportional increase in revenue, at least in the short term. The stabilization in 2024 and slight decrease in 2025 suggest the recent investments may not yet be fully contributing to revenue generation, or that other factors are influencing the ratio.
In summary, the company is actively investing in its fixed asset base, but the efficiency with which these assets are utilized to generate revenue is declining. Further investigation is warranted to understand the reasons behind this trend and to assess the potential impact on future profitability.
Total Asset Turnover
Freeport-McMoRan Inc., total asset turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Revenues ÷ Total assets
= ÷ =
The analysis reveals a generally stable, yet slightly declining, trend in total asset turnover over the five-year period. Revenues demonstrate modest growth, while total assets consistently increased, influencing the observed turnover ratio.
- Total Asset Turnover
- The total asset turnover ratio decreased from 0.48 in 2021 to 0.44 in 2022, indicating a less efficient utilization of assets to generate revenue. A slight recovery to 0.46 was noted in 2023, but the ratio remained below the 2021 level. The ratio stabilized at 0.45 in 2024 and 2025. This suggests that while revenue increased in later years, the growth in total assets outpaced revenue growth, preventing a significant improvement in asset utilization.
Revenues exhibited a relatively flat trajectory between 2021 and 2023, fluctuating around US$22.8 billion. A noticeable increase in revenues occurred in 2024 and 2025, reaching US$25.455 billion and US$25.915 billion, respectively. This revenue growth, however, was accompanied by a corresponding increase in total assets.
- Asset Growth
- Total assets increased consistently throughout the period, from US$48.022 billion in 2021 to US$58.167 billion in 2025. This continuous expansion of the asset base, while contributing to revenue increases in the later years, also contributed to the relatively stable, but lower, total asset turnover ratio. The largest year-over-year increase in total assets occurred between 2024 and 2025.
The consistent growth in total assets, coupled with the relatively stable revenue performance until 2024, suggests potential investment in long-term assets or expansion initiatives. The slight improvement in total asset turnover in 2023 and its stabilization in 2024 and 2025 indicate that the benefits of these investments are beginning to materialize, but have not yet resulted in a substantial increase in asset efficiency.
Equity Turnover
Freeport-McMoRan Inc., equity turnover calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= ÷ =
The analysis reveals a generally decreasing trend in equity turnover over the observed period, with a slight recovery in the most recent year. Revenues demonstrate a moderate increase overall, while stockholders’ equity consistently rises. These movements combine to influence the equity turnover ratio, indicating how efficiently the company generates revenue from its shareholders’ investments.
- Equity Turnover
- The equity turnover ratio decreased from 1.63 in 2021 to 1.37 in 2023, suggesting a diminishing ability to generate revenue relative to the amount of equity invested. This decline indicates that the company required more equity to support each dollar of revenue generated. A partial recovery is observed in 2024, with the ratio increasing to 1.45, but it subsequently decreased again to 1.37 in 2025.
- Revenue Trend
- Revenues remained relatively stable between 2021 and 2023, fluctuating around US$22.8 billion. A noticeable increase occurred in 2024, reaching US$25.455 billion, and continued into 2025, reaching US$25.915 billion. This revenue growth did not fully translate into a corresponding increase in equity turnover, suggesting other factors were at play.
- Stockholders’ Equity Trend
- Stockholders’ equity exhibited a consistent upward trend throughout the period, increasing from US$13.980 billion in 2021 to US$18.899 billion in 2025. This growth in equity, coupled with the relatively stable revenue in the earlier years, contributed to the observed decline in equity turnover. The continued increase in equity in 2024 and 2025, alongside moderate revenue gains, explains the limited recovery in the equity turnover ratio during those years.
In summary, while revenues have shown a positive trend, the more substantial growth in stockholders’ equity has resulted in a lower equity turnover ratio. The slight increase in 2024 suggests a potential stabilization, but the subsequent decrease in 2025 indicates the trend of decreasing efficiency in utilizing equity to generate revenue continues.