Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Freeport-McMoRan Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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), 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).
- Inventory Turnover
- The inventory turnover ratio showed a gradual decline starting from a peak around September 2021 at 3.25, decreasing steadily through 2022 and 2023, reaching a low point near 2.59 by December 2023. Throughout 2024 and into the third quarter of 2025, it stabilized around the 2.6 to 2.7 range. This trend suggests a slowing in the rate at which inventory is sold or used over the periods analyzed.
- Receivables Turnover
- Receivables turnover exhibited considerable fluctuations. It peaked multiple times, notably in June 2023 at 32.43 and again in March 2025 at 44.04, indicating periods of more efficient collection of receivables. However, between these peaks, the ratio decreased significantly, suggesting variability in credit management or sales on credit. Despite volatility, the overall pattern implies an improvement in receivables collection toward the latter periods.
- Working Capital Turnover
- The working capital turnover ratio remained relatively stable with minor fluctuations before demonstrating a pronounced upward trend from March 2024 onward. It increased from approximately 2.77 in early 2024 to exceed 3.2 by the third quarter of 2025. This improvement indicates enhanced efficiency in utilizing working capital to generate sales.
- Average Inventory Processing Period
- The average inventory processing period showed a general pattern of increase over time. After an initial decline from 129 days in March 2021 to about 112 days by September 2021, it reversed direction and consistently lengthened, reaching approximately 147 days by September 2025. This lengthening indicates that inventory remains held for longer periods, which could reflect slower sales or overstocking.
- Average Receivable Collection Period
- The average collection period for receivables demonstrated significant variation. It shortened from 28 days in the first quarter of 2021 to as low as 8 days in June 2025, suggesting enhanced efficiency in collecting outstanding amounts. However, some intermediate periods experienced increases to above 20 days, reflecting occasional delays. Overall, the trend points to a generally more efficient receivables management process over time.
- Operating Cycle
- The operating cycle, encompassing the combined effects of inventory processing and receivables collection times, reflected a pattern of relative stability albeit with some variability. Initial improvements were noted from 157 days in March 2021 down to 128 days by September 2021. Thereafter, the operating cycle extended back toward 150-160 days through to the latest periods under review. This trend suggests that gains in receivables collection efficiency were partly offset by increases in inventory holding periods, resulting in a modest overall operating cycle duration.
Turnover Ratios
Average No. Days
Inventory Turnover
Freeport-McMoRan Inc., inventory turnover calculation (quarterly data)
Based on: 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), 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 Q3 2025 Calculation
Inventory turnover
= (Cost of salesQ3 2025
+ Cost of salesQ2 2025
+ Cost of salesQ1 2025
+ Cost of salesQ4 2024)
÷ Inventories
= ( + + + )
÷ =
- Cost of Sales
- The cost of sales exhibited fluctuations over the observed periods, initially increasing from 3,206 million USD in March 2021 to a peak of 4,677 million USD by September 2024. There was a general upward trend with intermittent declines, notably between December 2024 (4,295 million USD) and March 2025 (4,222 million USD), followed by another increase reaching 4,950 million USD in June 2025 before slightly decreasing to 4,830 million USD by September 2025. This pattern suggests volatility with a general increasing trajectory in production or procurement costs over the span.
- Inventories
- Inventories steadily increased from 4,145 million USD at the beginning of the period to 6,998 million USD by September 2025. This consistent growth indicates accumulation of stock over time, potentially reflecting increased production capacity, anticipation of higher demand, or slower turnover. The incremental gains appear relatively steady each quarter without pronounced dips.
- Inventory Turnover
- The inventory turnover ratio started at 2.84 in March 2021 and rose to a peak of 3.25 in September 2021 and March 2022, indicating efficient inventory management during that period. Subsequently, the ratio experienced a gradual decline throughout the remaining periods, reaching around 2.61 by September 2025. The decreasing trend suggests that inventories were turning over less frequently, which may imply slower sales relative to the stock held, a buildup of unsold inventory, or lengthier inventory holding periods.
- Overall Insights
- The data reveals a scenario where costs of sales and inventory levels both increased over time, but the efficiency of inventory use as measured by turnover declined. The rising inventories alongside a declining turnover ratio may signal challenges in inventory management or changes in demand patterns. The upward trend in cost of sales corresponds with an expanding volume or higher input costs, while the decreasing turnover ratio despite rising sales costs and inventories suggests potential inefficiencies or cautious stocking strategies.
Receivables Turnover
Freeport-McMoRan Inc., receivables turnover calculation (quarterly data)
Based on: 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), 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 Q3 2025 Calculation
Receivables turnover
= (RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024)
÷ Trade accounts receivable
= ( + + + )
÷ =
The quarterly financial data reveals several discernible trends in revenues, trade accounts receivable, and receivables turnover over the analyzed periods.
- Revenues
- Revenues exhibited fluctuations with a general upward movement from early 2021 through early 2025. Initial figures increased from $4,850 million in March 2021 to a peak around $6,790 million by the third quarter of 2024. Notably, there was a dip observed in the fourth quarter of 2024 and the first quarter of 2025 where revenue declined to $5,720 million and $5,728 million respectively before rebounding to $7,582 million in the second quarter of 2025. This pattern suggests seasonality or external market influences impacting sales volumes and pricing.
- Trade Accounts Receivable
- The trade accounts receivable balances demonstrate considerable variability, with values ranging from a low of $578 million in June 2025 to a high of $1,537 million in March 2022. Generally, receivable levels appear to increase during certain quarters in line with higher revenues, such as the peaks in March 2022 and March 2024. However, notable declines occur in several periods, for example in June 2023 ($675 million) and June 2025 ($578 million), indicating improved collection practices or reduced credit sales during these times.
- Receivables Turnover Ratio
- The receivables turnover ratio shows significant volatility, ranging from 13.02 in March 2021 to a maximum of 44.04 in June 2025. Increasing turnover ratios indicate improved efficiency in collecting receivables. Higher turnover values in the mid to late stages of the dataset (notably in June 2023, September 2023, June 2024, and June 2025) correspond with decreases in trade accounts receivable balances, signaling better credit management or shorter customer payment cycles. Conversely, lower turnover ratios observed in the early periods and in December quarters suggest relatively slower collections.
In summary, the company experienced overall revenue growth with intermittent declines, likely reflecting market or operational factors. Trade accounts receivable levels fluctuated, at times mirroring revenue trends but also showing periods of effective receivables management. The receivables turnover ratio improved over time, especially in recent quarters, indicating enhanced collection efficiency, which positively impacts liquidity and cash flow management.
Working Capital Turnover
Freeport-McMoRan Inc., working capital turnover calculation (quarterly data)
Based on: 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), 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 Q3 2025 Calculation
Working capital turnover
= (RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024)
÷ Working capital
= ( + + + )
÷ =
- Working Capital
- Working capital showed a general upward trend from early 2021 through mid-2022, increasing from 6,245 million US dollars to a peak of 10,250 million US dollars by June 2022. Following this peak, there was a decline and subsequent fluctuations around a lower range, with values oscillating between approximately 7,800 million and 8,600 million US dollars from late 2023 onwards. The most recent quarters appear relatively stable but do not reach the earlier peak levels observed in 2022.
- Revenues
- Revenues exhibited volatility across the analyzed periods with notable fluctuations. Starting around 4,850 million US dollars in the first quarter of 2021, revenues generally rose to a peak of 6,603 million US dollars by early 2022, followed by a decline into the mid-5,000 million range through late 2022 and early 2023. From mid-2023 onwards, revenues showed both increases and decreases, including a significant rise to approximately 7,582 million US dollars in the third quarter of 2025, followed by a reduction to 6,972 million US dollars in the subsequent quarter.
- Working Capital Turnover
- The working capital turnover ratio experienced some variation with an initial level around 2.6 in the first quarter of 2021. The ratio dipped below 2.5 at several points in 2022 and early 2023, indicating somewhat lower efficiency in generating revenues from working capital during those periods. From late 2023 onwards, a clear improving trend is observable, with the ratio steadily increasing and reaching above 3.2 by the third quarter of 2025. This suggests enhanced efficiency in the utilization of working capital to generate revenues in the most recent quarters.
- Overall Analysis
- The data reflect a period of growth in working capital in 2021 and early 2022, followed by stabilization at lower levels more recently. Revenues have fluctuated but generally trended higher, particularly notable in certain recent quarters. The increasing working capital turnover ratio in recent periods indicates that the company has been improving the efficiency of its working capital use to generate revenues. This suggests a positive operational adjustment despite some volatility in revenue and working capital levels.
Average Inventory Processing Period
Freeport-McMoRan Inc., average inventory processing period calculation (quarterly data)
Based on: 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), 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 Q3 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
- Inventory Turnover
- The inventory turnover ratio exhibited a general upward trend from the first quarter of 2021 through the first quarter of 2022, increasing from 2.84 to a peak of 3.25. This suggests an improvement in the efficiency of inventory management during this period. Following this peak, the ratio showed a gradual decline with some fluctuations, falling to 2.59 by the end of 2023. In 2024 and early 2025, the ratio stabilized somewhat, fluctuating around a range of approximately 2.48 to 2.77, indicating a moderate reduction in turnover efficiency compared to the peak period.
- Average Inventory Processing Period
- The average inventory processing period, measured in days, experienced a corresponding trend but in inverse relation to inventory turnover, as expected. It decreased from 129 days in March 2021 to a low of 112 days in September 2021, reflecting quicker inventory turnover. However, from late 2021 onward, the period extended progressively, reaching a peak of 141 days by the end of 2023. The trend continued with some variability into 2024 and 2025, where the processing period averaged around 135 to 147 days, suggesting increasingly slower inventory movement during these quarters.
- Overall Insights
- The data indicates that the company improved its inventory efficiency during 2021 and early 2022, achieving higher turnover and shorter processing periods. However, beginning in mid-2022, there was a reversal of this trend, with inventory turnover decreasing and processing periods lengthening. This may reflect challenges in inventory management such as slower sales, increased stock levels, or supply chain dynamics that caused inventory to remain longer in stock. Stabilization in the later quarters suggests the situation may have settled but at a reduced level of operational efficiency compared to the peak periods.
Average Receivable Collection Period
Freeport-McMoRan Inc., average receivable collection period calculation (quarterly data)
Based on: 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), 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 Q3 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
The receivables turnover ratio exhibits notable fluctuations over the observed periods, indicating varying efficiency in the collection of receivables. Beginning at 13.02, the ratio rises steadily to peak at 27.47 by the third quarter of 2022, demonstrating improved collection efficiency during this interval. However, the ratio subsequently declines to around 18.9 by the end of 2022. Starting in 2023, the ratio again climbs with some volatility, reaching a significant high of 44.04 in the last quarter of 2024, indicating a marked improvement in turnover during that quarter. Following this peak, the ratio decreases but remains elevated relative to early periods, stabilizing around high twenties by late 2025.
The average receivable collection period complements this trend, showing an inverse relationship to the turnover ratio as expected. The period begins at 28 days and generally declines to as low as 13 days during late 2022, signifying quicker collections. Similar fluctuations occur thereafter; the collection period elongates slightly during phases when the turnover drops, such as at the end of 2022, but shortens again sharply when turnover peaks, most notably dropping to 8 days in the last quarter of 2024. Towards the end of the observed timeline, the period stabilizes around 13 days, consistent with a relatively efficient collection cycle.
Overall, the data indicate periods of significant improvement in receivables management, particularly around late 2022 and late 2024, where the company appears to accelerate cash inflow from receivables. However, the volatility in these metrics suggests that such improvements may be influenced by external factors or internal operational changes. The average collection period rarely exceeds 23 days and often trends below 20 days in recent years, which is generally favorable and indicative of effective receivables control.
- Receivables Turnover Ratio
- Shows a pattern of growth with periods of decline, peaking at 44.04 in late 2024, reflecting improved receivable collections efficiency.
- Average Receivable Collection Period
- Inversely mirrors turnover, decreasing from 28 days to as low as 8 days, indicating faster collections primarily at peaks in turnover.
- Trend Analysis
- Periods of enhanced efficiency are evident, though fluctuations suggest potential variability in collection processes or external conditions.
- Recent Stability
- Metrics stabilize towards the end of the timeline, implying a consistent and efficient receivable management approach.
Operating Cycle
Freeport-McMoRan Inc., operating cycle calculation (quarterly data)
No. days
Based on: 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), 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 Q3 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
- Average Inventory Processing Period
-
The average inventory processing period exhibits fluctuations over the analyzed quarters. Starting at 129 days in the first quarter of 2021, it decreased to a low of 112 days by the third quarter of 2021, indicating improved inventory turnover. However, from late 2021 onwards, there is a gradual upward trend seen again, peaking at 147 days in the first quarter of 2025. The period generally oscillates between 112 and 147 days, with an observable increase in the latter part of the timeline reflecting slower inventory processing.
- Average Receivable Collection Period
-
The average receivable collection period shows considerable variability with an overall downward tendency. It started at 28 days in the first quarter of 2021, decreased to a minimum of 8 days in the second quarter of 2025, indicating faster collection of receivables. Notably, several quarters displayed brief increases, such as reaching 23 days in the first quarter of 2022 and the first quarter of 2024, but the trend demonstrates an emphasis on improved receivables management over time.
- Operating Cycle
-
The operating cycle, combining inventory processing and receivable collection periods, shows some volatility but remains relatively stable around the 140-160 day range. Initially, it declined from 157 days in the first quarter of 2021 to 128 days in the third quarter of 2021, then steadily increased to 160 days by the fourth quarter of 2023. Subsequent quarters fluctuate modestly but maintain levels near 150 to 160 days, suggesting a balance between inventory and receivable management cycles despite individual component variations.