Freeport-McMoRan (LIM:FCX) ROCE % : 16.67% (As of Sep. 2024)

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What is Freeport-McMoRan ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Freeport-McMoRan's annualized ROCE % for the quarter that ended in Sep. 2024 was 16.67%.

Freeport-McMoRan ROCE % Historical Data

The historical data trend for Freeport-McMoRan's ROCE % can be seen below:

* 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.

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Freeport-McMoRan ROCE % Chart

Freeport-McMoRan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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2.42

6.28

20.43

16.75

14.26

Freeport-McMoRan Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															13.50	15.62	14.91	17.58	16.67

Freeport-McMoRan ROCE % Calculation

Freeport-McMoRan's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	6521	/	( ( (51093 - 6345)	+	(52506 - 5815) )	/ 2 )
	=	6521	/	( (44748	+	46691)	/ 2 )
	=	6521	/	45719.5
	=	14.26 %

Freeport-McMoRan's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	8140	/	( ( (54635 - 6136)	+	(55400 - 6247) )	/ 2 )
	=	8140	/	( ( 48499	+	49153 )	/ 2 )
	=	8140	/	48826
	=	16.67 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Freeport-McMoRan (LIM:FCX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Freeport-McMoRan Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Freeport-McMoRan Inc (LIM:FCX) » Definitions » ROCE %

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Traded in Other Exchanges

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Address

333 North Central Avenue, Phoenix, AZ, USA, 85004-2189

Website

https://www.fcx.com

Freeport-McMoRan owns stakes in 10 copper mines, led by its 49% ownership of the Grasberg copper and gold operations in Indonesia, 55% of the Cerro Verde mine in Peru, and 72% of Morenci in Arizona. It sold around 1.2 million metric tons of copper (its share) in 2023, making it the one of the world's largest copper miners by volume. It also sold about 900,000 ounces of gold, mostly from Grasberg, and 70 million pounds of molybdenum. About 75% of 2023 revenue was from copper, with a further 15% from gold and about 10% from molybdenum. It had about 25 years of copper reserves at end December 2023. we expect it to sell similar amounts of copper midcycle in 2028, though we expect gold volumes to decline to about 700,000 ounces then due to falling production at Grasberg.