MP Materials Corp (MP)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 203,855 | 184,074 | 173,663 | 206,429 | 253,445 | 305,485 | 377,414 | 456,952 | 527,510 | 533,374 | 508,683 | 438,239 | 331,952 | 275,021 | 216,289 | 173,562 | 134,310 | 113,180 | 99,074 | 81,407 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 1,108,720 | 1,044,840 | 1,009,080 | 935,743 | 830,033 | 749,848 | 668,488 | 611,710 | 582,838 | 562,001 | 534,057 | 504,092 | 57,325 | 49,297 | 49,297 |
| Fixed asset turnover | — | — | — | — | — | 0.28 | 0.36 | 0.45 | 0.56 | 0.64 | 0.68 | 0.66 | 0.54 | 0.47 | 0.38 | 0.32 | 0.27 | 1.97 | 2.01 | 1.65 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $203,855K ÷ $—K
= —
The fixed asset turnover ratio for MP Materials Corp has shown fluctuations over the period under consideration.
- From March 31, 2020, to June 30, 2020, the ratio increased from 1.65 to 2.01, indicating that the company generated more revenue per dollar invested in fixed assets during this period.
- Subsequently, from June 30, 2020, to September 30, 2020, the ratio remained relatively stable at 1.97, suggesting consistent efficiency in utilizing fixed assets to generate sales.
- However, a significant decline was observed by December 31, 2020, with the ratio plummeting to 0.27, signaling a decrease in the company's ability to generate revenue from its fixed assets efficiently.
- This downward trend continued into the following quarters, with the ratio gradually increasing but remaining below 1, indicating a continued challenge in efficiently utilizing fixed assets to drive sales.
- As of December 31, 2023, the fixed asset turnover ratio remained at 0. This could be due to various reasons such as changes in operational efficiency, asset utilization, or company strategy.
Overall, the analysis of MP Materials Corp's fixed asset turnover ratio suggests a fluctuating trend with periods of both improvement and decline in the company's ability to generate sales from its fixed assets. Further examination of operational and financial factors would be necessary to understand the underlying reasons for these changes and to determine potential areas for improvement.
Peer comparison
Dec 31, 2024