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Freeport-McMoRan Financial Strength

: 6 (As of Jun. 2022)
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Freeport-McMoRan has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Freeport-McMoRan's Interest Coverage for the quarter that ended in Jun. 2022 was 11.12. Freeport-McMoRan's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.51. As of today, Freeport-McMoRan's Altman Z-Score is 2.19.


Competitive Comparison

For the Copper subindustry, Freeport-McMoRan's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Freeport-McMoRan Financial Strength Distribution

For the Metals & Mining industry and Basic Materials sector, Freeport-McMoRan's Financial Strength distribution charts can be found below:

* The bar in red indicates where Freeport-McMoRan's Financial Strength falls into.



Freeport-McMoRan Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Freeport-McMoRan's Interest Expense for the months ended in Jun. 2022 was $-156 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,734 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $10,054 Mil.

Freeport-McMoRan's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1734/-156
=11.12

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Freeport-McMoRan's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1038 + 10054) / 21664
=0.51

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Freeport-McMoRan has a Z-score of 2.19, indicating it is in Grey Zones. This implies that Freeport-McMoRan is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.19 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Freeport-McMoRan  (NYSE:FCX) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Freeport-McMoRan has the Financial Strength Rank of 6.


Freeport-McMoRan Financial Strength Related Terms

Thank you for viewing the detailed overview of Freeport-McMoRan's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Freeport-McMoRan Business Description

Freeport-McMoRan logo
Address
333 North Central Avenue, Phoenix, AZ, USA, 85004-2189
Freeport-McMoRan Inc is an international mining company. It operates geographically diverse assets with proven and probable mineral reserves of copper, gold and molybdenum. The company's portfolio of assets includes the Grasberg minerals district in Indonesia; and mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru. It derives key revenue from the sale of Copper.
Executives
Dudley Robert W. director 333 NORTH CENTRAL AVENUE PHOENIX AZ 85004
Donadio Marcela E director 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036-6565
Abney David P director 55 GLENLAKE PARWAY, NE ATLANTA GA 30328
Lewis Sara Grootwassink director C/O CAPITALSOURCE INC. 4445 WILLARD AVENUE, 12TH FLOOR CHEVY CHASE MD 20815
Robertson Maree E. officer: SVP & CFO 333 N. CENTRAL AVE. PHOENIX AZ 85004
Currault Douglas N. Ii officer: Senior VP & General Counsel 333 N. CENTRAL AVENUE PHOENIX AZ 85004
Higgins Stephen T. officer: Senior VP & CAO 333 N. CENTRAL AVENUE PHOENIX AZ 85004
Grant Hugh director C/O PPG INDUSTRIES, INC. 1 PPG PLACE PITTSBURGH PA 15272
Lance Ryan Michael director SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Stephens John Joseph director C/O SOLID POWER, INC. 486 S PIERCE AVE., SUITE E LOUISVILLE CO 80027
Langham Andrew director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Mather Courtney director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Conger Harry M. Iv officer: Pres & COO FM Americas 333 NORTH CENTRAL AVENUE PHOENIX AZ 85004
Townsend Frances F director C/O BAKER BOTTS LLP THE WARNER, 1299 PENNSYLVANIA AVE., NW WASHINGTON DC 20004-2400
Kennard Lydia H director 155 N LAKE AVE PASADENA CA 91101

Freeport-McMoRan Headlines

Other Sources

Freeport-McMoRan: Riding the Copper Wave

By tipranks.com 2022-02-17

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