MP Materials Corp (MP)
Inventory turnover
| 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 | 60,910 | 78,620 | 76,754 | 76,303 | 77,656 | 74,827 | 72,281 | 69,672 | 80,801 | 156,034 | 143,607 | 127,841 | 112,531 | |||
| Inventory | US$ in thousands | 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 | 0.64 | 1.02 | 1.13 | 1.23 | 1.35 | 1.21 | 1.71 | 1.76 | 2.09 | 4.57 | 4.05 | 3.64 | 3.49 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $60,910K ÷ $95,182K
= 0.64
MP Materials Corporation's inventory turnover has been fluctuating over the past eight quarters. It decreased from 1.60 in Q4 2022 to 0.97 in Q4 2023, indicating that the company took longer to sell its inventory in the most recent quarter. While the turnover improved in Q1 and Q2 of 2023, reaching 1.51 and 1.38, respectively, it decreased again to 1.21 in Q3 2023.
Overall, the trend suggests that the company's efficiency in turning over its inventory has been somewhat inconsistent. A lower inventory turnover can signify excess inventory or difficulties in selling products, which could tie up capital and lead to potential obsolescence risks. It is essential for MP Materials Corporation to carefully manage its inventory levels to optimize its working capital and maximize profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023