MP Materials Corp (MP)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Payables turnover | 2.97 | 5.07 | — | — | |
| Number of days of payables | days | 122.99 | 72.04 | — | — |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.97
= 122.99
Based on the data provided, the number of days of payables for MP Materials Corporation has shown a significant improvement over the past two years. As of December 31, 2023, the company takes approximately 110.21 days to pay its payables, indicating a notable decrease from 286.03 days in the previous year.
This improvement suggests that MP Materials Corporation has become more efficient in managing its accounts payable, potentially negotiating better terms with its suppliers or streamlining its payment processes. It is essential to monitor this metric over time to ensure the company maintains a healthy balance between managing its cash flow effectively and maintaining good relationships with its vendors.
Peer comparison
Dec 31, 2023