MP Materials Corp (MP)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 194,917 | 115,192 | 153,506 | 128,510 | 106,869 | 136,342 | 121,887 | 114,479 | 110,574 | 103,515 | 107,860 | 104,982 | 114,811 | 126,178 | 122,188 | 116,180 | 92,343 | 74,934 | 70,275 | 64,617 |
| Inventory | US$ in thousands | 107,905 | 116,699 | 115,384 | 108,509 | 95,182 | 77,179 | 67,783 | 61,804 | 57,554 | 61,645 | 42,244 | 39,619 | 38,692 | 34,126 | 35,501 | 35,098 | 32,272 | 31,040 | 29,711 | 29,711 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $194,917K ÷ $107,905K
= 1.81
The inventory turnover of MP Materials Corp has fluctuated over the past few years, ranging from a low of 0.99 in September 30, 2024, to a high of 3.70 in September 30, 2021. This ratio measures how efficiently the company is managing its inventory by indicating how many times the company sells and replaces its inventory within a given period.
A higher inventory turnover ratio is generally preferred as it suggests that the company is selling its products quickly and efficiently. A lower ratio may indicate overstocking, obsolete inventory, or difficulties in selling products.
It is important for MP Materials Corp to monitor its inventory turnover consistently and take appropriate actions to optimize inventory management. Analyzing trends in this ratio can help the company assess the effectiveness of its inventory control policies and identify areas for improvement in the supply chain and sales strategies.
Peer comparison
Dec 31, 2024
Dec 31, 2024