Stock Analysis on Net
Stock Analysis on Net

Freeport-McMoRan Inc. (NYSE:FCX)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability ratios measure the company ability to generate profitable sales from its resources (assets).

Profitability Ratios (Summary)

Freeport-McMoRan Inc., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 31.33% 33.76% 38.59% 17.91% 9.01%
Operating profit margin 27.24% 30.89% 36.62% 17.16% 7.58%
Net profit margin 8.09% 15.22% 18.85% 4.22% -1.66%
Return on Investment
Return on equity (ROE) 11.07% 22.30% 30.80% 5.89% -2.57%
Return on assets (ROA) 3.52% 6.79% 8.97% 1.42% -0.59%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Freeport-McMoRan Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Freeport-McMoRan Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Freeport-McMoRan Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Freeport-McMoRan Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Freeport-McMoRan Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Gross Profit Margin

Freeport-McMoRan Inc., gross profit margin calculation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross profit 7,160 7,691 8,815 2,543 1,297
Revenues 22,855 22,780 22,845 14,198 14,402
Profitability Ratio
Gross profit margin1 31.33% 33.76% 38.59% 17.91% 9.01%

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
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 7,160 ÷ 22,855 = 31.33%

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Freeport-McMoRan Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

Freeport-McMoRan Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Operating income 6,225 7,037 8,366 2,437 1,091
Revenues 22,855 22,780 22,845 14,198 14,402
Profitability Ratio
Operating profit margin1 27.24% 30.89% 36.62% 17.16% 7.58%
Benchmarks
Operating Profit Margin, Industry
Materials 22.62% 19.68% 21.62% 14.41% 10.43%

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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 6,225 ÷ 22,855 = 27.24%

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Freeport-McMoRan Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Freeport-McMoRan Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
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)
Revenues 22,855 22,780 22,845 14,198 14,402
Profitability Ratio
Net profit margin1 8.09% 15.22% 18.85% 4.22% -1.66%
Benchmarks
Net Profit Margin, Industry
Materials 13.25% 12.31% 13.59% 8.58% 5.93%

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
Net profit margin = 100 × Net income (loss) attributable to common stockholders ÷ Revenues
= 100 × 1,848 ÷ 22,855 = 8.09%

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Freeport-McMoRan Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

Freeport-McMoRan Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
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)
Stockholders’ equity 16,693 15,555 13,980 10,174 9,298
Profitability Ratio
ROE1 11.07% 22.30% 30.80% 5.89% -2.57%
Benchmarks
ROE, Industry
Materials 17.36% 16.42% 16.54% 8.40% 5.74%

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
ROE = 100 × Net income (loss) attributable to common stockholders ÷ Stockholders’ equity
= 100 × 1,848 ÷ 16,693 = 11.07%

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Freeport-McMoRan Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Return on Assets (ROA)

Freeport-McMoRan Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
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)
Total assets 52,506 51,093 48,022 42,144 40,809
Profitability Ratio
ROA1 3.52% 6.79% 8.97% 1.42% -0.59%
Benchmarks
ROA, Industry
Materials 6.68% 6.28% 6.65% 3.40% 2.43%

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
ROA = 100 × Net income (loss) attributable to common stockholders ÷ Total assets
= 100 × 1,848 ÷ 52,506 = 3.52%

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Freeport-McMoRan Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.