Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Profitability Ratios (Summary)
Freeport-McMoRan Inc., profitability ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial performance over the observed periods reveals distinct trends across profitability and efficiency metrics.
- Gross Profit Margin
- The gross profit margin exhibits a strong upward trajectory from the initial available data point, rising from 17.91% in March 2021 to a peak of 41.2% in June 2022. Following this peak, the margin declines progressively, reaching around 29.3% by June 2025. This pattern suggests an initial improvement in cost management or pricing power, followed by a moderation or increase in costs impacting profitability at the gross level.
- Operating Profit Margin
- Similar to the gross margin, the operating profit margin shows robust growth from 17.16% in March 2021 to 39.2% in June 2022. Thereafter, it also diminishes, falling to approximately 26.28% by June 2025. Although the decline parallels the gross margin trend, the consistently lower values reflect operating expenses absorbing a portion of gross profit, yet the overall trend indicates improved operational efficiency during the rise followed by contraction.
- Net Profit Margin
- The net profit margin increases from 4.22% in March 2021 to a high of 20.79% in June 2022, reflecting strong bottom-line profitability improvements. However, thereafter, it gradually decreases, stabilizing near 7.11% by June 2025. This reduction at the net level may indicate increased interest, taxes, or other non-operating expenses impacting the ultimate profitability despite prior gains in operating performance.
- Return on Equity (ROE)
- ROE rose significantly from 5.89% in March 2021 to a peak of 34.41% in June 2022, mirroring the patterns in profitability margins. Post-peak, ROE declines substantially, settling around 10.57% by June 2025. This suggests that shareholder returns improved rapidly within the initial period but softened considerably as profitability tapered off and possibly as equity base changes occurred.
- Return on Assets (ROA)
- The ROA, reflecting asset efficiency, ascended from 1.42% in March 2021 to 10.47% in June 2022, indicative of better utilization of assets in generating profits. Following the peak, ROA diminishes to near 3.41% by June 2025, indicating a decline but still demonstrating some asset efficiency relative to earlier periods before March 2021.
Collectively, the data depict a phase of significant financial performance improvements across margins and returns up to mid-2022, followed by a period of gradual profitability normalization. The initial improvement phase could be attributed to favorable market conditions, operational enhancements, or cost management, while the subsequent decline may reflect market pressures, cost increases, or strategic shifts affecting margins and returns. The net margins’ sharper decline relative to operating margins points to increased non-operating costs or tax impacts in the latter periods.
Return on Sales
Return on Investment
Gross Profit Margin
Freeport-McMoRan Inc., gross profit margin calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Gross profit margin = 100
× (Gross profit (loss)Q2 2025
+ Gross profit (loss)Q1 2025
+ Gross profit (loss)Q4 2024
+ Gross profit (loss)Q3 2024)
÷ (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
- Gross Profit (Loss)
- The gross profit experienced a significant upward trajectory from March 31, 2020, to December 31, 2021, beginning with a loss of $310 million and rising sharply to reach a peak of $2,532 million in September 2021. After this high point, the gross profit showed some volatility but generally maintained elevated levels, fluctuating between approximately $1,100 million and $1,900 million throughout 2022 and 2023. Starting from early 2024, there was a renewed increase, culminating in the highest observed gross profit of $2,632 million by June 30, 2025.
- Revenues
- Revenues showed a consistent upward trend overall, increasing from $2,798 million in March 2020 to $6,164 million by December 2021. Following this period, there was a decline in the first half of 2022, with revenues dropping as low as $5,003 million in September 2022 but recovering somewhat in the subsequent quarters. From early 2023 onward, revenues exhibited a mostly stable to upward pattern, reaching new highs up to $7,582 million in June 2025, indicating a positive long-term growth trend despite mid-cycle fluctuations.
- Gross Profit Margin
- The gross profit margin data begins from March 31, 2020, showing a notable increase throughout 2020 and 2021, climbing from the mid-teens to a peak of around 41.2% by March 2022. However, after this peak, the margin experienced a gradual decline and stabilization in the low 30% range from mid-2022 through mid-2025. This suggests initial strong profitability improvements followed by a period of more modest and stable margin levels despite revenue growth.
- Overall Analysis
- Over the observed period, both gross profit and revenues demonstrated strong long-term growth, punctuated by some interim volatility, particularly visible in 2022. The early sharp increase in gross profit and margin through 2021 suggests improved operational efficiency or favorable market conditions during that time. The subsequent margin contraction and stabilization imply competitive pressures or cost increases balanced with growing sales volumes. The continuing rise in revenue and gross profit into 2025 reflects sustained business expansion and resilience. The gross profit margin settling near 30% after earlier peaks signifies a normalization phase at a healthy profitability level rather than continued expansion of profit efficiency.
Operating Profit Margin
Freeport-McMoRan Inc., operating profit margin calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2025
+ Operating income (loss)Q1 2025
+ Operating income (loss)Q4 2024
+ Operating income (loss)Q3 2024)
÷ (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
The analysis of the quarterly financial data reveals several notable trends in the operating income, revenues, and operating profit margin over the periods from March 2020 through June 2025.
- Operating Income (Loss)
- The operating income experienced significant growth over the observed timeline. Initially, in the first quarter of 2020, there was an operating loss of $473 million. However, from the second quarter of 2020 onward, positive operating income was recorded, with a marked increase reaching a peak of $2,809 million in the first quarter of 2022. After this peak, operating income showed volatility, decreasing to $962 million in the third quarter of 2022 before stabilizing and generally trending upward again, reaching values above $1,500 million in subsequent quarters. Despite fluctuations, the general trend indicates recovery and growth from the initial loss.
- Revenues
- Revenues demonstrate a growth pattern over the time frame analyzed. Starting at $2,798 million in the first quarter of 2020, revenue increased steadily, peaking at $6,790 million in the third quarter of 2024. Some periods showed revenue declines, particularly from the fourth quarter of 2021 to the third quarter of 2022, where revenue decreased from $6,164 million to $5,003 million. However, the subsequent quarters observed a recovery and continued revenue growth, culminating in a higher peak of $7,582 million in the second quarter of 2025. The overall trend indicates resilience and expansion despite some intermediate declines.
- Operating Profit Margin
- The operating profit margin data is only available starting from March 2020, where initial values are not reported. The margin rose sharply to 17.16% in the first available quarter and continued an upward trajectory reaching a maximum of 39.2% in the first quarter of 2022. Following this peak, a declining trend in the margin is observed, falling to lows around 25% in early 2023. From there, the margin showed a moderate recovery, stabilizing in the mid to high 20% range, between 26% and 28%, through to the second quarter of 2025. The pattern suggests initial margin improvement, a peak near early 2022, and subsequent normalization to a sustainable level.
In conclusion, the data show a substantial recovery and growth in operating income and revenues after an initial loss and moderate revenue base in early 2020. Operating profitability also improved considerably, peaking in early 2022 before settling at a steady level. Revenue growth faced some interruptions but ultimately continued on an upward trend, indicating overall positive operational performance throughout the period analyzed.
Net Profit Margin
Freeport-McMoRan Inc., net profit margin calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Net profit margin = 100
× (Net income (loss) attributable to common stockholdersQ2 2025
+ Net income (loss) attributable to common stockholdersQ1 2025
+ Net income (loss) attributable to common stockholdersQ4 2024
+ Net income (loss) attributable to common stockholdersQ3 2024)
÷ (RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024)
= 100 × ( + + + )
÷ ( + + + )
=
- Net Income (Loss) Attributable to Common Stockholders
- The net income showed a significant improvement from a loss of $491 million in March 2020 to consistent profitability in subsequent quarters. From mid-2020 through 2021, net income exhibited robust growth, peaking in September 2021 at $1,399 million. Thereafter, it experienced fluctuations but remained positive, with occasional decreases such as in June 2022 and downtrends in late 2023. In 2024, net income resumed an upward trajectory, culminating in a rise to $772 million by December 2024.
- Revenues
- Revenues increased steadily from $2,798 million in March 2020 to a high of $6,790 million in September 2024, marking more than a twofold growth over the period. The trajectory was generally upward, notwithstanding a notable dip during mid-2022 where revenues fell to around $5,000 million before recovering. The data from late 2023 onward demonstrates strong and increasing revenue trends, reaching $7,582 million by December 2025.
- Net Profit Margin
- The net profit margin was initially undefined in early 2020 but became positive starting in the first quarter of 2021, reflecting improving profitability. Margins rose sharply to a peak of 20.79% in March 2022. Subsequently, margins showed a gradual decline and some volatility, decreasing to mid-single digits by late 2023. Despite this decrease, margins stabilized in the range of approximately 7-9% throughout 2024 and early 2025, indicating sustained but moderated profitability relative to revenues.
- Overall Trends and Insights
- The data reveals a clear recovery and growth in financial performance following early 2020 losses, with revenue and net income both showing strong upward trends over the analyzed periods. The peak in profitability margins around early 2022 indicates efficient cost management or favorable conditions during that period, though subsequent margin declines suggest increased costs or competitive pressures. Nonetheless, the company maintained positive net income and healthy revenues through 2024 and into 2025, implying resilience and an ability to generate consistent earnings despite margin compression.
Return on Equity (ROE)
Freeport-McMoRan Inc., ROE calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
ROE = 100
× (Net income (loss) attributable to common stockholdersQ2 2025
+ Net income (loss) attributable to common stockholdersQ1 2025
+ Net income (loss) attributable to common stockholdersQ4 2024
+ Net income (loss) attributable to common stockholdersQ3 2024)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
The financial data reveals several notable trends over the reported periods regarding net income, stockholders’ equity, and return on equity (ROE).
- Net Income (Loss) Attributable to Common Stockholders
- The net income figures exhibit a general upward trajectory from a loss in early 2020 to significantly positive values in subsequent quarters. Starting with a loss of $491 million in March 2020, the company quickly recovered, showing positive net income from June 2020 onward, peaking at $1,527 million in March 2022. However, after this peak, the net income displays some volatility and downward correction, particularly noticeable from June 2022 through the end of 2023, fluctuating between $343 million and $663 million. The first quarters of 2024 and 2025 indicate a partial recovery, with net income rising again, reaching $772 million by June 2025.
- Stockholders' Equity
- Stockholders’ equity consistently increased throughout the entire period, reflecting a steady strengthening of the company’s financial base. Beginning at $8,855 million in March 2020, equity rose steadily each quarter, eventually reaching $18,208 million by June 2025. There are no significant declines or stagnations noted in the equity figures, indicating ongoing capital accumulation or retained earnings growth.
- Return on Equity (ROE)
- ROE data, available from late 2020, paints a picture of peak profitability followed by gradual normalization. ROE surged from 5.89% in September 2020 to a high of 34.41% in June 2022. After this peak, ROE steadily declined, reaching as low as approximately 9.77% in December 2023. From early 2024 onward, it showed slight improvements, fluctuating close to 10-11% through June 2025. This trend suggests that while the company experienced a period of exceptional return on equity, possibly driven by robust net income growth, profitability returns to a more moderate and sustainable level over time.
Overall, the data indicates a strong recovery and growth phase following the early 2020 loss, with growth in equity supporting expanding net income and enhanced returns on equity, despite some fluctuations and moderations in profit margins and ROE in later periods.
Return on Assets (ROA)
Freeport-McMoRan Inc., ROA calculation (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
ROA = 100
× (Net income (loss) attributable to common stockholdersQ2 2025
+ Net income (loss) attributable to common stockholdersQ1 2025
+ Net income (loss) attributable to common stockholdersQ4 2024
+ Net income (loss) attributable to common stockholdersQ3 2024)
÷ Total assets
= 100 × ( + + + )
÷ =
The net income attributable to common stockholders demonstrates notable fluctuations across the reported quarters. Initially, a significant loss of 491 million US dollars is observed in March 2020, followed by a recovery phase with positive net income from June 2020 onward. The net income peaks multiple times, reaching a high of 1,527 million US dollars in March 2022. Subsequently, net income values exhibit volatility, with several declines and recoveries, culminating in a figure of 772 million US dollars in June 2025. Overall, the net income trend reveals a pattern of recovery and growth following the initial loss, tempered by periodic decreases.
Total assets of the entity show a consistent upward trajectory over the examined period. Starting at 40,219 million US dollars in March 2020, total assets experience steady growth, reaching 56,492 million US dollars by June 2025. This indicates ongoing expansion of the company's asset base without any periods of material contraction, reflecting potential investments, acquisitions, or asset appreciation over time.
The Return on Assets (ROA) data, available from September 2020, highlights an increasing profitability trend early in the period. The ROA ascends from 1.42% in September 2020 to a peak of 10.47% in June 2022, indicating improved efficiency in generating profits from the asset base. However, after this peak, ROA gradually declines, with fluctuations around a lower range between 3.06% and 4.18% from late 2022 through mid-2025. This decline may suggest challenges in maintaining earlier profitability levels relative to asset size, despite ongoing asset growth.
- Net Income (Loss) Attributable to Common Stockholders
- Marked initial loss in early 2020 followed by recovery and growth phases with significant volatility. Highest values reached in early 2022 with subsequent oscillations ending in moderate positive net income.
- Total Assets
- Consistent and steady increase over the analyzed timeframe, indicating asset base expansion without notable setbacks.
- Return on Assets (ROA)
- Improvement in asset profitability until mid-2022 with a peak ROA above 10%, followed by a downward adjustment and stabilization in a moderate range near 3-4% thereafter.