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: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Current Ratio 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).
- Gross Profit Margin
- The gross profit margin exhibited an overall upward trajectory from the first quarter of 2021 through the first quarter of 2022, increasing from 27.67% to a peak of 41.2%. Following this peak, a declining trend is observed, with the margin decreasing steadily through 2023, ranging from 30.38% in the first quarter to 31.33% at year-end. Into 2024 and early 2025, the margin stabilizes around the low 30% range, showing minor fluctuations but maintaining a relatively consistent profitability at the gross level.
- Operating Profit Margin
- The operating profit margin generally mirrors the pattern of the gross profit margin, starting at 27.34% in March 2021 and reaching its highest point of 39.2% in March 2022. Subsequently, there is a noticeable decline during the course of 2022 and 2023, bottoming at 25.14% in the second quarter of 2023. There is a modest recovery toward the end of 2023 and into 2024, with margins hovering around the 26-28% range before experiencing a slight decrease again by mid-2025. This indicates moderate volatility at the operating level but a general trend of contraction after early 2022 highs.
- Net Profit Margin
- The net profit margin shows a strong growth trend through 2021 and into early 2022, rising from 11.13% to a peak of 20.79% by March 2022. Afterwards, the margin falls sharply through 2023, reaching a low of 8.09% by December 2023. There is minimal recovery observed in 2024 and 2025 with margins fluctuating around 7-8%, remaining substantially lower than the peak levels. This pattern suggests that despite initial profitability gains, net income faced increasing pressures or expenses, reducing the bottom-line profitability in the latter periods.
- Return on Equity (ROE)
- ROE showed a robust increase from 16.56% in March 2021 to a maximum of 34.41% in March 2022, demonstrating significant value generation for shareholders during this timeframe. Following this peak, a consistent downward trend ensues, decreasing to approximately 10-11% in 2024 and remaining near that level through mid-2025. The decline indicates reduced returns on shareholder investments after the strong initial performance, aligning with the net profit margin's contraction over the same period.
- Return on Assets (ROA)
- The return on assets increased from 4.14% in the first quarter of 2021 to a high of 10.47% in March 2022, reflecting more efficient asset utilization and stronger overall profitability. Post-peak, ROA gradually declines through 2023 and early 2024, reaching levels just above 3%, with minor fluctuations but no strong recovery by mid-2025. This trend signals diminishing efficacy in using assets to generate earnings, consistent with the general moderation in profitability observed across other metrics.
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).
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 Trends
- The gross profit exhibited a generally fluctuating pattern over the observed periods. Starting at $1,644 million in the first quarter of 2021, it increased significantly, peaking at $2,964 million in the first quarter of 2022. Following this peak, there was a notable decline in gross profit over the subsequent quarters in 2022, reaching a low of $1,104 million in the third quarter of 2022. The amount then showed a recovery trend through 2023 and into 2024, with some variability, culminating in a sharp increase to $2,632 million by the first quarter of 2025. This indicates periods of volatility in profitability but a general resilience evidenced by rebound phases.
- Revenue Patterns
- Revenues rose steadily from $4,850 million in the first quarter of 2021 to a high of $6,790 million by the third quarter of 2024, showing an overall growth trend. However, some short-term declines occurred, notably in the later quarters of 2022 when revenues dropped below $5,000 million in the third quarter and remained volatile around the $5,700 million range through late 2024 into early 2025. Despite fluctuations, the revenue level at the end of the period surpassed the initial figures substantially.
- Gross Profit Margin Analysis
- The gross profit margin percentage started at 27.67% in the first quarter of 2021 and increased steadily, reaching its peak at 41.2% in the first quarter of 2022. After this peak, the margin declined but remained relatively stable, fluctuating between 29% and 33% through 2023 and early 2024. By mid-2025, the margin slightly decreased again, registering approximately 29.3%. The margin trends suggest that while the company experienced improved profitability efficiency early on, there was some erosion in margin in the subsequent years, though maintaining a moderate level overall.
- Overall Insights
- The data reflects a cyclical pattern characterized by strong profitability and revenue growth in early 2022, followed by a period of decreased financial performance mid-2022 to mid-2023. The recovery in gross profit in late 2023 and into 2024 indicates a potential return to favorable market or operational conditions. Revenue growth over the entire period points to expanding business activities, despite short-term disruptions. The fluctuation in gross profit margin points to varying cost control effectiveness or pricing dynamics impacting profitability. Monitoring the factors driving these fluctuations could provide further clarity on underlying operational 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).
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 financial data reveals several key trends in operating income, revenues, and operating profit margin over multiple quarters.
- Operating Income
- Operating income demonstrates marked fluctuations across the reported periods. It showed a strong increase from $1,532 million in the first quarter of 2021 to a peak of $2,809 million in the first quarter of 2022. Subsequently, a notable decline occurred in the second and third quarters of 2022, reaching a low of $962 million in the third quarter of 2022. Following this trough, operating income recovered moderately toward the end of 2022 and into 2023, maintaining a range generally between $1,400 million and $1,700 million. In the latter quarters, another peak arose in the last quarter of 2024 with $2,432 million, indicating a cyclical pattern of earnings with high volatility quarter-to-quarter.
- Revenues
- Revenues show a gradual upward trend from $4,850 million in the first quarter of 2021 to $6,603 million by the first quarter of 2022, illustrating strong top-line growth early in the periods. Afterward, revenues experienced some volatility, with declines in mid-2022 quarters, similar to operating income, dipping to approximately $5,003 million in the third quarter of 2022. There was a recovery following that, with revenues generally stabilizing around the $5,700 million to $6,900 million range through 2023 and 2024. The data culminates with a significant jump to $7,582 million in the first quarter of 2025, indicating a substantial revenue boost at the end of the timeline.
- Operating Profit Margin
- The operating profit margin reached its highest levels in the second half of 2021 and early 2022, peaking at approximately 39.2% in the first quarter of 2022. Afterward, margins gradually declined in the following quarters, falling to below 27% by the third quarter of 2023 and remaining relatively stable in the mid-to-high twenties percent range thereafter. This decline in margin percentage contrasts with the revenue and income rebounds, suggesting increased costs or operational challenges impacting profitability ratios despite higher revenue.
Overall, the analysis indicates that while revenues have trended upward with periodic volatility, operating income is more variable with pronounced peaks and troughs. The operating profit margin reached a peak in early 2022 before settling at a moderately lower, though stable, level. These patterns suggest cyclical influences on earnings and profitability that may warrant further investigation into cost management and operational efficiency drivers.
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).
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 company's net income demonstrated a fluctuating pattern over the observed quarters. Starting at 718 million USD in the first quarter of 2021, net income rose significantly to peak around 1,527 million USD in the first quarter of 2022. Following this peak, a marked decline occurred through the latter half of 2022, with values dropping to as low as 404 million USD in the third quarter of 2022.
- Throughout 2023 and into the early part of 2024, net income stabilized somewhat, generally maintaining a range between approximately 343 and 616 million USD. A moderate recovery is noticeable beginning in the second quarter of 2024, with net income increasing again and reaching 772 million USD by the first quarter of 2025. Overall, the pattern reflects cyclical volatility with periods of both strong gains and significant pullbacks.
- Revenues
- Revenue trends exhibited similar cyclical fluctuations. Revenues increased steadily from 4,850 million USD in the first quarter of 2021 to a peak of 6,603 million USD in the first quarter of 2022, aligning with the net income peak. Subsequently, revenues declined sharply in the following quarters, dipping to around 5,003 million USD in the third quarter of 2022.
- In 2023, revenues varied roughly between 5,389 million and 6,624 million USD, showing moderate recovery and general stabilization. By early 2025, revenues surged again to 7,582 million USD, suggesting a strong upward trajectory toward the end of the reporting period.
- Net Profit Margin
- The net profit margin followed a declining trend after a peak in early 2022. Initially, margins improved from 11.13% in the first quarter of 2021 to a high of 20.79% in the first quarter of 2022.
- Thereafter, margins diminished progressively across subsequent quarters, falling below 10% by mid-2023 and remaining relatively flat between 6.97% and 8.09% through late 2023 and early 2024. The margin continued to hover around 7–8% towards late 2024 and early 2025, indicating a reduction in profitability relative to revenues compared to the previous peak period. Despite the increased revenue towards the end of the period, the net profit margin did not return to previous highs, signaling potential pressure on cost structures or other factors affecting profitability.
- Summary
- The financial data reflect a cyclical business environment with a peak in profitability and revenues around early 2022, followed by a downturn in both metrics throughout late 2022 and 2023. Although revenues experienced a resurgence toward early 2025, net income and profit margins have not fully recovered to peak levels, indicating a more cautious outlook regarding efficiency and profitability. The divergence between rising revenues and relatively lower profit margins in the later quarters suggests increasing costs or other challenges impacting net profitability.
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).
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 analysis of the quarterly financial data reveals several notable trends in profitability, equity growth, and return on equity (ROE) over the observed periods.
- Net Income Attributable to Common Stockholders
- The net income figures exhibit significant volatility across quarters. Starting at 718 million USD in the first quarter of 2021, net income rose sharply to a peak of 1,527 million USD by the first quarter of 2022. Following this peak, a pronounced decline occurred in mid-2022, dropping to as low as 404 million USD in the third quarter of 2022. Afterward, the income showed moderate fluctuations, generally stabilizing in a lower range compared to the peak, with periodic rises and falls through 2023 and early 2024. In the most recent quarters, net income shows a slight upward trend, culminating at 772 million USD in the second quarter of 2025.
- Stockholders’ Equity
- Stockholders’ equity has shown a consistent upward trajectory throughout the entire period. Starting from 10,920 million USD in the first quarter of 2021, equity increased steadily each quarter, surpassing 18,000 million USD by the second quarter of 2025. The growth in equity appears steady and incremental, indicating accumulation of retained earnings, capital contributions, or other equity enhancements without significant volatility.
- Return on Equity (ROE)
- The ROE trend closely mirrors the fluctuations seen in net income, reflecting changes in profitability relative to the equity base. ROE started at 16.56% in early 2021 and escalated rapidly to a peak of 34.41% by the first quarter of 2022, consistent with the peak net income observed at that point. Following this, ROE declined steadily to a low of approximately 9.77% by the first quarter of 2024, indicating reduced profitability efficiency despite the growing equity base. Subsequently, ROE stabilized around 10-11% through the most recent quarters, suggesting a modest recovery in generating returns on equity.
Overall, the data demonstrates that the company experienced a period of strong profitability growth leading up to early 2022, followed by a significant reduction in net income and return on equity in the subsequent quarters. Despite the reduced profitability, equity continued to grow steadily, which may have contributed to the dilution of ROE. The recent quarters show some improvement in profitability measures, suggesting potential stabilization or recovery in financial performance.
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).
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 quarterly financial data reveals notable fluctuations in net income attributable to common stockholders and a steady growth in total assets over the analyzed periods. Return on Assets (ROA) demonstrates a declining trend despite variations in profitability metrics.
- Net Income Trends
- Net income experienced significant volatility throughout the reported quarters. After reaching a peak of 1,527 million US dollars in the first quarter of 2022, the figure declined sharply to 404 million US dollars by the third quarter of that year. A moderate recovery was observed towards the end of 2022 and into early 2023, with values around 663 million US dollars. However, the income figures generally remained lower compared to the 2021 highs. In 2024 and 2025, net income showed a pattern of moderate fluctuations, with quarters registering amounts between approximately 274 million and 772 million US dollars, indicating variability in profitability but without returning to earlier peak levels.
- Total Assets Growth
- Total assets exhibited consistent growth across the entire period. Starting from approximately 43.6 billion US dollars in early 2021, total assets increased steadily each quarter, reaching roughly 56.5 billion US dollars by mid-2025. This upward trajectory suggests ongoing investment and expansion of the asset base over the years, reflecting potential growth strategies or capital expenditures supporting operational scaling.
- Return on Assets (ROA) Dynamics
- ROA values reflect a declining pattern from the high point of 10.47% in the first quarter of 2022 to around 3.16-3.62% in 2024 and 2025. The ROA decrease indicates that, despite growing total assets, the company’s efficiency in generating net income from its assets has diminished over time. This reduction may be attributed to the fluctuating net income combined with asset growth, leading to lower overall returns on the investment base.
- Summary of Financial Performance
- The analysis indicates that while asset growth has been stable and steady, profitability evidenced by net income has been inconsistent, with significant peaks followed by downturns. The downward trend in ROA underscores challenges in maintaining high returns on an expanding asset base. These trends may warrant further examination of operational efficiencies and cost management to better leverage asset growth into improved profitability.