Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Freeport-McMoRan Inc., profitability ratios (quarterly data)
Based on: 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 profitability metrics exhibited a general declining trend over the observed period, spanning from March 2022 to December 2025. While fluctuations occurred within this timeframe, the overall trajectory points towards reduced profitability across all measured ratios. Initial values were comparatively strong, but subsequent quarters demonstrate a consistent erosion of margins and returns.
- Gross Profit Margin
- The gross profit margin began at 41.20% in March 2022, demonstrating relative stability through June 2022. A noticeable decline commenced in September 2022, reaching a low of 28.16% by December 2025. While some quarterly variations occurred, the overall trend is definitively downward, indicating increasing costs relative to revenue.
- Operating Profit Margin
- Mirroring the gross profit margin, the operating profit margin also experienced a consistent decrease. Starting at 39.20% in March 2022, it fell to 25.15% by December 2025. The rate of decline appeared to accelerate in the latter half of the period, suggesting increasing operating expenses or reduced operational efficiency. Similar to the gross profit margin, quarterly fluctuations were present but did not alter the overall downward trend.
- Net Profit Margin
- The net profit margin exhibited the most substantial decline of all the observed ratios. Beginning at 20.79% in March 2022, it decreased to 8.50% by December 2025. This significant reduction suggests that factors beyond cost of goods sold and operating expenses, such as interest or taxes, also contributed to the diminished profitability. The margin demonstrated a particularly sharp decrease between June 2022 and December 2023.
- Return on Equity (ROE)
- ROE followed a similar pattern of decline, starting at 34.41% in March 2022 and decreasing to 11.66% by December 2025. This indicates a diminishing ability to generate profit from shareholder investments. The rate of decline was most pronounced between March 2022 and December 2023, with a period of relative stabilization before resuming the downward trend.
- Return on Assets (ROA)
- ROA also showed a consistent downward trend, beginning at 10.47% in March 2022 and ending at 3.79% in December 2025. This suggests a decreasing efficiency in utilizing assets to generate earnings. The decline in ROA was relatively steady throughout the observed period, though the magnitude of the decrease was less dramatic than that of the net profit margin.
In summary, the observed data indicates a consistent and substantial decline in profitability across all measured ratios over the period. This trend warrants further investigation to identify the underlying causes and potential mitigating strategies.
Return on Sales
Return on Investment
Gross Profit Margin
Freeport-McMoRan Inc., gross profit margin calculation (quarterly data)
Based on: 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 Q4 2025 Calculation
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The gross profit margin exhibited fluctuations over the observed period, beginning in March 2022 and extending through December 2025. An initial period of relative stability transitioned into a declining trend, followed by periods of recovery and subsequent decline.
- Initial Period (Mar 31, 2022 – Jun 30, 2022)
- The gross profit margin began at 41.20% in March 2022 and decreased slightly to 40.49% by June 2022. This represents a modest initial decline.
- Declining Trend (Sep 30, 2022 – Mar 31, 2023)
- A more pronounced downward trend was observed from September 2022 through March 2023. The gross profit margin decreased from 36.22% to 30.38%, indicating increasing cost pressures or decreasing selling prices during this timeframe.
- Recovery and Stabilization (Jun 30, 2023 – Sep 30, 2024)
- From June 2023 to September 2024, the gross profit margin demonstrated a period of recovery and relative stabilization. It increased from 28.81% to 31.95%, suggesting potential improvements in cost management or pricing strategies. However, this recovery did not fully restore the margin to its initial levels.
- Subsequent Decline (Dec 31, 2024 – Dec 31, 2025)
- The gross profit margin experienced a renewed decline in the latter part of the period. It decreased from 31.68% in December 2024 to 28.16% in December 2025. This final decline suggests a re-emergence of the factors that initially pressured margins.
- Overall Trend
- Considering the entire period, the gross profit margin demonstrated a general tendency towards lower values. While fluctuations occurred, the margin ended at 28.16%, which is notably lower than the 41.20% recorded at the beginning of the observation period. This suggests a long-term erosion of profitability at the gross profit level.
The fluctuations in gross profit margin warrant further investigation into the underlying drivers, such as commodity price movements, production costs, and sales mix. The observed trends could indicate increasing competitive pressures or inefficiencies in the production process.
Operating Profit Margin
Freeport-McMoRan Inc., operating profit margin calculation (quarterly data)
Based on: 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 Q4 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The operating profit margin exhibited considerable fluctuation throughout the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the margin demonstrated strength, but subsequently experienced a declining trend before stabilizing and showing some recovery.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The operating profit margin began at 39.20% in March 2022 and generally decreased over the subsequent quarters, reaching 30.89% by December 2022. This represents a substantial decline, suggesting increasing costs relative to revenue or potentially pricing pressures.
- Stabilization and Recovery (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, the operating profit margin fluctuated within a narrower range, between 25.14% and 27.95%. While not returning to the levels seen in early 2022, this period indicates a potential stabilization of profitability. A slight upward trend is observable during this timeframe.
- Recent Performance (Mar 31, 2024 – Dec 31, 2025)
- The operating profit margin continued to fluctuate. It reached 28.64% in June 2024, before decreasing to 25.15% by December 2025. The most recent quarters show a slight downward trend, although the margin remains within the range observed throughout 2023. The margin in December 2025 is the lowest observed in the entire period.
- Overall Trend
- The overall trend indicates a decrease in operating profit margin from the beginning of the period to the end. While there were periods of stabilization, the margin did not consistently return to its initial high levels. The final reported value suggests a potential weakening of profitability.
The observed fluctuations warrant further investigation into the underlying drivers of revenue and operating income. A detailed analysis of cost structures and pricing strategies would be beneficial in understanding the reasons for these changes.
Net Profit Margin
Freeport-McMoRan Inc., net profit margin calculation (quarterly data)
Based on: 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 Q4 2025 Calculation
Net profit margin = 100
× (Net income attributable to common stockholdersQ4 2025
+ Net income attributable to common stockholdersQ3 2025
+ Net income attributable to common stockholdersQ2 2025
+ Net income attributable to common stockholdersQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
The net profit margin exhibited a clear downward trend over the observed period, beginning in March 2022 and continuing through December 2023. Subsequent quarters show some stabilization and modest recovery, though the margin remains below initial levels. A detailed examination of the progression follows.
- Initial Decline (Mar 31, 2022 – Dec 31, 2023)
- The net profit margin began at 20.79% in March 2022. A consistent decline was observed through December 2023, reaching a low of 8.09%. This represents a substantial decrease in profitability over this period, indicating that the company’s ability to translate revenue into profit diminished.
- Stabilization and Recovery (Mar 31, 2024 – Dec 31, 2025)
- Following the low in December 2023, the net profit margin demonstrated a degree of stabilization. The margin increased to 8.50% by December 2025, with fluctuations in the intervening quarters. While there is a recovery from the lowest point, the margin did not return to the levels seen in early 2022. The margin in December 2025 is approximately 41% lower than the margin in March 2022.
- Quarterly Fluctuations
- Within the overall trends, quarterly variations are present. For example, a slight increase was noted from September 2024 (7.81%) to December 2024 (7.42%), followed by a further increase to March 2025 (7.11%). Similarly, a notable increase occurred between March 2025 (7.11%) and June 2025 (7.45%). These fluctuations suggest that profitability is subject to seasonal or other short-term influences.
- Revenue and Net Income Relationship
- Revenues generally increased over the period, but the decline in net profit margin indicates that revenue growth did not translate into proportional growth in net income. This suggests increasing costs or pricing pressures. While revenues increased from $5,633 million in December 2025 to $7,582 million in June 2025, net income decreased from $406 million to $772 million, indicating that the increased revenue did not result in a proportional increase in profit.
In summary, the company experienced a significant reduction in net profit margin between March 2022 and December 2023, followed by a period of stabilization and modest recovery. Further investigation into the underlying drivers of these changes, such as cost of goods sold, operating expenses, and pricing strategies, would be necessary to fully understand the observed trends.
Return on Equity (ROE)
Freeport-McMoRan Inc., ROE calculation (quarterly data)
Based on: 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 Q4 2025 Calculation
ROE = 100
× (Net income attributable to common stockholdersQ4 2025
+ Net income attributable to common stockholdersQ3 2025
+ Net income attributable to common stockholdersQ2 2025
+ Net income attributable to common stockholdersQ1 2025)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
Return on Equity (ROE) experienced a notable decline over the observed period, commencing in early 2022 and stabilizing in late 2024 and early 2025. Initial values were strong, but subsequent quarters demonstrate a consistent reduction in this profitability metric.
- Overall Trend
- The ROE exhibited a clear downward trajectory from a high of 34.41% in March 2022 to 11.66% by December 2025. This represents a substantial decrease in the return generated on shareholders’ equity.
- Initial Decline (March 2022 – December 2022)
- A significant decrease in ROE occurred throughout 2022. Starting at 34.41% in March, it fell to 22.30% by the end of the year. This period reflects a consistent erosion of profitability relative to equity.
- Continued Reduction (March 2023 – December 2023)
- The downward trend continued into 2023, with ROE decreasing from 16.22% in March to 11.07% in December. This suggests that the factors contributing to the initial decline persisted throughout the year.
- Stabilization (March 2024 – December 2025)
- From March 2024 onwards, the ROE appears to stabilize, fluctuating between approximately 9.77% and 11.66%. While still considerably lower than the initial values, the rate of decline has slowed considerably. The ROE increased from 9.77% in March 2024 to 11.66% in December 2025.
- Relationship to Underlying Components
- The decline in ROE is influenced by both net income attributable to common stockholders and stockholders’ equity. While stockholders’ equity generally increased over the period, the growth in equity was not sufficient to offset the fluctuations and overall decrease in net income, resulting in the observed ROE trend. Net income experienced more volatility than stockholders’ equity.
In summary, the ROE demonstrates a pronounced decline followed by a period of relative stabilization. Further investigation into the drivers of net income and equity changes is warranted to fully understand the underlying causes of these trends.
Return on Assets (ROA)
Freeport-McMoRan Inc., ROA calculation (quarterly data)
Based on: 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 Q4 2025 Calculation
ROA = 100
× (Net income attributable to common stockholdersQ4 2025
+ Net income attributable to common stockholdersQ3 2025
+ Net income attributable to common stockholdersQ2 2025
+ Net income attributable to common stockholdersQ1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
The Return on Assets (ROA) exhibited a clear downward trend over the observed period, beginning in March 2022 and continuing through December 2023. Subsequent quarters show some stabilization and modest increases, but overall performance remains below initial levels. A detailed examination of the ROA trajectory reveals distinct phases.
- Initial Decline (Mar 31, 2022 – Dec 31, 2023)
- From a high of 10.47% in March 2022, ROA steadily decreased to 6.79% by December 2022. This decline continued into 2023, reaching a low of 3.52% in December 2023. This period reflects a consistent erosion of profitability relative to the asset base.
- Stabilization and Modest Recovery (Mar 31, 2024 – Dec 31, 2025)
- Beginning in March 2024, ROA demonstrated a degree of stabilization, fluctuating between 3.06% and 3.79%. While there were incremental improvements in subsequent quarters, reaching 3.79% in December 2025, the ROA did not return to the levels observed in early 2022. The increase from 3.06% in March 2024 to 3.79% in December 2025 suggests a potential shift in operational efficiency or asset utilization, though the magnitude of the improvement is limited.
- Correlation with Net Income and Total Assets
- The decline in ROA during the initial phase correlates with both a decrease in net income attributable to common stockholders and an increase in total assets. While net income decreased significantly from US$1,527 million in March 2022 to US$388 million in December 2022, total assets concurrently increased from US$48,832 million to US$51,093 million. This suggests that the decrease in ROA was driven by a combination of lower profitability and a larger asset base. The subsequent stabilization and slight recovery in ROA appear to be linked to a relative stabilization of net income and a slower rate of asset growth.
- Recent Performance
- The most recent observation, December 31, 2025, shows an ROA of 3.79%. This represents an improvement from the low point in December 2023, but remains considerably lower than the ROA recorded in March 2022. The trend suggests that while the company has begun to address the factors contributing to the initial decline, further improvements are necessary to restore ROA to previous levels.
In summary, the ROA experienced a substantial decline followed by a period of stabilization and modest recovery. The observed trends indicate a complex interplay between profitability and asset management, requiring continued monitoring to assess the sustainability of recent improvements.