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← Freeport-Mcmoran

The business behind the dividend

MeasureFCXMedianFormula
Return on equity22.0%11.7%Net income ÷ shareholders’ equity
Return on capital employed23.0%10.1%Operating income ÷ (equity + total debt)
Owner earnings$1.90bn$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$1.12bn$746.10mOperating cash flow − capital expenditure
Operating margin25.9%15.0%Operating income ÷ revenue
Net margin16.5%10.2%Net income ÷ revenue
Debt to equity0.50x0.79xTotal debt ÷ shareholders’ equity
Interest cover25.46x4.43xOperating income ÷ interest expense
Current ratio2.29x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital1.15x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversion1.35x1.78xOperating cash flow ÷ net income

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity22.0%25.0%22.5%28.8%38.4%8.5%-2.0%29.5%26.3%-66.5%22.5%
Return on capital employed23.0%25.9%23.8%26.9%35.7%12.3%5.7%22.7%17.4%-12.4%22.7%
Operating margin25.9%27.3%27.4%30.2%37.3%17.5%7.6%25.1%23.2%-18.7%25.1%
Net margin16.5%17.5%16.5%19.2%23.9%6.2%-1.3%15.3%13.2%-27.6%15.3%
Debt to equity0.50x0.51x0.56x0.68x0.68x0.95x1.06x1.14x1.66x2.65x0.68x
Current ratio2.29x2.42x2.42x2.46x2.52x2.72x2.47x3.14x2.16x2.45x2.45x
Cash conversion1.35x1.63x1.41x1.15x1.44x3.49x1.33x2.23x1.44x

How it compares in materials

Among the 35 materials companies here measured on free cash flow, Freeport-Mcmoran pays out less than 8 of them. The median for that group is 40.8%, against this company’s 77.5%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 47 in materials →