MP Materials Corp (MP)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.51 | 1.56 | 1.92 | 2.60 | 3.17 | |
| DOH | days | 145.53 | 234.07 | 189.98 | 140.33 | 115.03 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.51
= 145.53
The days of inventory on hand (DOH) for MP Materials Corp have exhibited fluctuations over the years as per the provided data. As of December 31, 2020, the company had approximately 115.03 days of inventory on hand. This figure increased to 140.33 days by December 31, 2021, indicating that the company was holding inventory for a longer period.
By December 31, 2022, the DOH significantly rose to 189.98 days, suggesting a further increase in the average time it takes for MP Materials Corp to sell its inventory. The trend continued with a notable jump to 234.07 days by December 31, 2023, signifying more extended inventory turnover cycles and potential challenges in managing inventory levels effectively.
However, the DOH decreased to 145.53 days by December 31, 2024, reflecting a possible improvement in inventory management efficiencies or adjustments in the company's operations.
Overall, the varying levels of DOH over the years highlight fluctuations in MP Materials Corp's inventory management practices and the need for continuous monitoring and optimization to maintain optimal inventory levels and enhance operational performance.
Peer comparison
Dec 31, 2024