Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Freeport-McMoRan Inc., profitability ratios (quarterly data)
Based on: 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 demonstrates notable fluctuations across the reported quarters, with distinct trends in profitability and efficiency metrics.
- Gross Profit Margin
- Beginning in March 2021, the gross profit margin shows an upward trajectory, rising from 17.91% to a peak of 41.2% in June 2022. Subsequently, a gradual decline follows, reaching approximately 29.3% by March 2025. This indicates a phase of improving cost management or pricing power until mid-2022, followed by a period of margin contraction.
- Operating Profit Margin
- The operating margin mirrors the gross margin trend, starting at 17.16% in March 2021 and climbing to a high of 39.2% in June 2022. After this peak, the margin decreases steadily to around 26.28% by March 2025. The pattern suggests that operating expenses grew or revenues softened post mid-2022, impacting the company's operational profitability.
- Net Profit Margin
- Net profit margin exhibits a substantial increase from 4.22% in March 2021 to a peak of 20.79% in June 2022, followed by a consistent decline to approximately 7.11% by March 2025. This trend highlights a period of strengthening bottom-line profitability in the initial stages, tapering off over recent quarters, potentially due to increased costs, tax effects, or non-operating factors.
- Return on Equity (ROE)
- The return on equity rises sharply from 5.89% in March 2021 to a high of 34.41% in June 2022, reflecting efficient utilization of shareholder capital during this period. Afterwards, ROE declines to 10% by March 2025. The reduction in ROE may signal either lower net income generation or higher equity levels, diluting returns on invested capital.
- Return on Assets (ROA)
- Return on assets improves from 1.42% in March 2021 to a peak of 10.47% in June 2022, indicating enhanced effectiveness in asset utilization to generate earnings. Following this, ROA diminishes gradually to 3.16% by March 2025, signaling a decrease in asset profitability, possibly due to asset growth outpacing net income gains or operational challenges.
Overall, the data reflects a significant improvement in profitability and efficiency metrics during the 2021 to mid-2022 period, followed by a sustained contraction phase through to early 2025. These patterns suggest that the company experienced strong financial performance driven by favorable market or operational conditions initially, with subsequent pressures impacting margins and returns in more recent 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: 2025-03-31), 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 Q1 2025 Calculation
Gross profit margin = 100
× (Gross profit (loss)Q1 2025
+ Gross profit (loss)Q4 2024
+ Gross profit (loss)Q3 2024
+ Gross profit (loss)Q2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × ( + + + )
÷ ( + + + )
=
The gross profit (loss) demonstrates a significant recovery and growth pattern over the observed periods. Initially, the company recorded a gross loss of $310 million as of March 31, 2020, followed by a steady upward trajectory reaching a peak gross profit of $2,532 million by September 30, 2021. After this peak, gross profit shows some fluctuations, generally maintaining above $1,600 million, with periodic declines notably in mid-2022 and late 2024. However, the overall trend remains positive compared to the early periods, indicating a strengthening in profitability.
Revenues display a consistent growth trend over time with some volatility. Starting at $2,798 million in March 2020, revenues increase to peak near $6,790 million by September 2024. There are intermittent declines, such as the dip in revenue around the third quarter of 2022 and the sharp reduction in the first quarter of 2025. Despite these decreases, the general revenue progression demonstrates expansion and increased sales volume or pricing power over the examined timeline.
Gross profit margin data, available from December 31, 2020, onwards, indicates improving efficiency and profitability margins initially, rising from 17.91% to a peak of 41.2% by March 31, 2022. After this peak, the margin exhibits a gradual decline, oscillating mostly between 28% and 32% in subsequent quarters. This suggests that while gross profit increased in absolute terms earlier, the margin pressure emerged later, likely reflecting increased costs or pricing challenges despite sustained revenue growth.
- Gross Profit (Loss)
- Recovered from negative territory in early 2020 to strong positive values by late 2021, followed by fluctuations but generally maintaining profitability above historical lows.
- Revenues
- Show a clear upward trajectory over the analyzed period, more than doubling from early 2020 to late 2024, though with noticeable dips at specific quarters indicating possible market or operational challenges.
- Gross Profit Margin
- Initially increased significantly, peaking at above 40%, then faced a downward trend stabilizing around 28-32%, highlighting margin compression despite high revenue levels.
In summary, the data reflects a company that has substantially improved its gross profit and revenue base following early 2020 losses, achieving strong profitability by 2021. However, subsequent periods reveal margin pressures and revenue volatility. This pattern suggests external or internal cost factors impacting margins despite continued scale in revenue, warranting focus on cost management or pricing strategies moving forward.
Operating Profit Margin
Freeport-McMoRan Inc., operating profit margin calculation (quarterly data)
Based on: 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 Q1 2025 Calculation
Operating profit margin = 100
× (Operating income (loss)Q1 2025
+ Operating income (loss)Q4 2024
+ Operating income (loss)Q3 2024
+ Operating income (loss)Q2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × ( + + + )
÷ ( + + + )
=
- Operating Income Trend
- The operating income shows significant volatility over the observed periods. Starting from a negative value of -$473 million in March 2020, it quickly turned positive and increased substantially, peaking around $2.5 billion by the end of 2021. Following this, a decline is notable during 2022, reaching a low point near $962 million in September 2022. The income then partially recovered in subsequent quarters, maintaining a range between approximately $1.4 billion and $1.7 billion through 2023 and early 2024, before declining again toward the end of 2024 and early 2025, with values just above $1.2 billion.
- Revenue Pattern
- Revenues exhibited an overall upward trajectory from early 2020 through late 2021, rising from about $2.8 billion to over $6.1 billion. In 2022, revenues decreased significantly, with values dropping below $5 billion in some quarters. This dip was followed by a moderate, albeit inconsistent, recovery across 2023 and early 2024, with revenues peaking near $6.6 billion in late 2024 before decreasing again to around $5.7 billion by early 2025.
- Operating Profit Margin Dynamics
- Operating profit margin data are available from late 2020 onwards, starting at 17.16% in September 2020. Margins improved steadily to reach a peak above 39% in early 2022, indicating enhanced profitability relative to revenues. However, following this peak, margins experienced a declining trend, dropping to approximately 26% by early 2025. This suggests increasing cost pressures or less favorable operating conditions despite fluctuating revenues and operating incomes.
- Overall Observations
- The period analyzed reflects a cycle of rapid recovery and growth in operating income and revenues through 2020 and 2021, followed by volatility and a downward adjustment in 2022. Although some recovery occurred afterward, results did not return to prior peak levels by early 2025. The operating profit margin corroborates this pattern, with peak profitability in early 2022 declining steadily thereafter. These patterns point to a period of strong growth followed by operational challenges impacting both top-line revenues and profitability ratios.
Net Profit Margin
Freeport-McMoRan Inc., net profit margin calculation (quarterly data)
Based on: 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 Q1 2025 Calculation
Net profit margin = 100
× (Net income (loss) attributable to common stockholdersQ1 2025
+ Net income (loss) attributable to common stockholdersQ4 2024
+ Net income (loss) attributable to common stockholdersQ3 2024
+ Net income (loss) attributable to common stockholdersQ2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × ( + + + )
÷ ( + + + )
=
- Net Income (Loss) Attributable to Common Stockholders
- The net income displayed a negative value of -491 million USD in March 2020, indicating a loss during that quarter. Subsequently, the company experienced a recovery and consistent growth in net income, peaking at 1,399 million USD in September 2021. Following this high point, net income exhibited fluctuations with some quarters showing declines, but generally remaining positive. For instance, net income was 1,527 million USD in March 2022 but then decreased sharply to 404 million USD in September 2022 before rising again moderately. More recent quarters from March 2023 to March 2025 show a somewhat volatile but positive trend, with net income oscillating between a low of 274 million USD and a high of 616 million USD, indicating ongoing variability in profitability.
- Revenues
- Revenues showed an overall upward trend from March 2020 through December 2021, increasing from 2,798 million USD to a high of 6,164 million USD. This was followed by a brief period of decline and volatility, where revenues dropped to 5,003 million USD in September 2022 but then partially recovered, maintaining levels around 5,700 to 6,700 million USD through most of 2023 and early 2024. However, the last two quarters in the data set show revenues falling again to approximately 5,720 million USD, suggesting some recent challenges in sustaining higher revenue levels.
- Net Profit Margin
- Net profit margin was not reported for the initial quarters but appeared at 4.22% in December 2020 and subsequently exhibited a pattern of steady growth, reaching a peak of 20.79% in March 2022. After this peak, the margin declined steadily, falling to 7.11% by March 2025. This decline indicates that despite revenues recovering and remaining relatively high, profitability as a percentage of revenues has decreased over the more recent periods, suggesting pressure on cost structure or other factors affecting margins.
- Overall Insights
- The company experienced a strong rebound in profitability and revenue following losses in early 2020, with peak net income and profit margins around late 2021 and early 2022. This period likely corresponds to favorable market conditions or operational improvements. Following these peaks, both net income and net profit margins have shown downward trends, despite relatively stable revenues, pointing to potential margin compression or rising costs. The revenue fluctuations in late 2022 and afterward underline some instability or external market impacts. The declining net profit margin signals increasing challenges in converting revenue into net income, warranting attention to cost management and efficiency improvements going forward.
Return on Equity (ROE)
Freeport-McMoRan Inc., ROE calculation (quarterly data)
Based on: 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 Q1 2025 Calculation
ROE = 100
× (Net income (loss) attributable to common stockholdersQ1 2025
+ Net income (loss) attributable to common stockholdersQ4 2024
+ Net income (loss) attributable to common stockholdersQ3 2024
+ Net income (loss) attributable to common stockholdersQ2 2024)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
The financial data over the observed periods reveal notable trends in net income attributable to common stockholders, stockholders’ equity, and return on equity (ROE). The patterns indicate fluctuations influenced by varying market conditions and company performance.
- Net Income (Loss) Attributable to Common Stockholders
- The net income shows significant volatility across quarters. Starting with a loss of $491 million in March 2020, the company moved into positive net income territory from June 2020 onward, with a marked increase noticeable in the latter half of 2020. Peak net income was observed in September 2021 at $1,399 million, followed by considerable fluctuations in subsequent quarters. The income generally remained positive but showed a declining trend throughout 2022 and early 2023, before exhibiting some recovery in mid and late 2023. In 2024 and early 2025, net income appears moderately stable albeit at lower levels compared to peak performance periods.
- Stockholders’ Equity
- Stockholders’ equity demonstrates a consistent upward trajectory throughout the entire timeframe. Starting at $8,855 million in March 2020, equity grew steadily each quarter, reaching approximately $17,688 million by March 2025. This gradual increase reflects capital retention, reinvestment of earnings, and possibly other equity-enhancing activities. The steady equity growth contrasts with the volatility observed in net income, indicating sound capital management despite fluctuations in profitability.
- Return on Equity (ROE)
- ROE data, which begins from March 2021, exhibits a pattern consistent with the fluctuations in net income. It shows an initial rise from 5.89% to a peak of 34.41% in June 2022, followed by a gradual decline through 2022 and 2023. ROE stabilizes in the range of 10% to 13% for 2024 and early 2025, reflecting a decrease from previous peak profitability but maintaining a moderate return level on shareholders’ equity. This pattern suggests that the company’s efficiency in generating profits from equity peaked around mid-2022 and moderated thereafter.
Return on Assets (ROA)
Freeport-McMoRan Inc., ROA calculation (quarterly data)
Based on: 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 Q1 2025 Calculation
ROA = 100
× (Net income (loss) attributable to common stockholdersQ1 2025
+ Net income (loss) attributable to common stockholdersQ4 2024
+ Net income (loss) attributable to common stockholdersQ3 2024
+ Net income (loss) attributable to common stockholdersQ2 2024)
÷ Total assets
= 100 × ( + + + )
÷ =
The net income attributable to common stockholders exhibits significant variability over the reported periods, starting from a notable loss in early 2020, followed by a strong recovery and continuous growth throughout 2020 and 2021. The peak net income values are observed in the third quarter of 2021, with over $1.3 billion, before experiencing a gradual decline and fluctuations throughout 2022 and 2023. Entering 2024, the net income stabilizes at moderate levels, showing some upward movement but remaining below the peaks reached in 2021.
Total assets show a steady upward trajectory from the beginning of the period through the latest reported quarter. The asset base increases consistently each quarter, reflecting ongoing growth and investment. This growth is relatively smooth without noticeable interruptions, indicating stable asset management and expansion efforts over the years.
Return on assets (ROA) emerges starting in the third quarter of 2020, increasing steadily to reach a peak in mid-2022 at over 10%, which aligns with the higher net income and consistent asset base growth. Following this peak, the ROA declines gradually through late 2022 and stabilizes around the 3% to 4% range from 2023 onwards. This indicates a reduction in profitability relative to total assets despite continued asset growth.
- Net Income (Loss) Attributable to Common Stockholders
- Initial loss in early 2020, followed by a significant rebound and peak in mid-2021, then a downward trend with moderate fluctuations through 2023 and early 2024.
- Total Assets
- Continuous and steady increase from approximately $40 billion to $56 billion over the five-year span, demonstrating asset growth and expansion.
- Return on Assets (ROA)
- Starting from early 2020, ROA rose sharply to over 10% by mid-2022, correlating with rising net income, then declined and stabilized between 3% and 4% through subsequent quarters.
Overall, the financial data suggest that the company experienced strong profitability recovery post-2020 with asset growth continuing uninterrupted. However, the efficiency of asset utilization as measured by ROA diminished after peaking in 2022, indicating that the increase in net income did not keep pace with asset expansion in the most recent periods.