MP Materials Corp (MP)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.81 | 0.99 | 1.33 | 1.18 | 1.12 | 1.77 | 1.80 | 1.85 | 1.92 | 1.68 | 2.55 | 2.65 | 2.97 | 3.70 | 3.44 | 3.31 | 2.86 | 2.41 | 2.37 | 2.17 | |
| DOH | days | 202.06 | 369.78 | 274.36 | 308.19 | 325.08 | 206.62 | 202.98 | 197.05 | 189.98 | 217.36 | 142.95 | 137.75 | 123.01 | 98.72 | 106.05 | 110.27 | 127.56 | 151.19 | 154.32 | 167.83 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.81
= 202.06
MP Materials Corp's days of inventory on hand (DOH) measures the average number of days it takes for the company to sell its inventory.
From March 31, 2020 to September 30, 2021, MP Materials Corp managed to improve its inventory management significantly, with a decreasing trend in DOH from 167.83 days to 98.72 days. This indicates the company was able to streamline its operations and sell inventory more efficiently during this period.
However, from September 30, 2021 to September 30, 2024, there was a notable increase in DOH, reaching a peak of 369.78 days by September 30, 2024. This suggests that the company may have faced challenges in managing its inventory levels efficiently and converting inventory into sales promptly during this period.
The spike in DOH towards the end of the period, specifically reaching 369.78 days by September 30, 2024, indicates potential inventory management issues that could lead to increased carrying costs, obsolete inventory, and potential liquidity challenges for MP Materials Corp.
In conclusion, MP Materials Corp exhibited varying levels of efficiency in managing its inventory over the analyzed period, with periods of improvement followed by a sharp increase in days of inventory on hand. This trend highlights the importance of maintaining a balance between optimizing inventory levels and ensuring smooth operations to support overall financial health.
Peer comparison
Dec 31, 2024