MP Materials Corp (MP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 83,084 | 77,656 | 61,756 | 95,735 |
| Payables | US$ in thousands | 27,995 | 15,326 | — | — |
| Payables turnover | 2.97 | 5.07 | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $83,084K ÷ $27,995K
= 2.97
The payables turnover ratio for MP Materials Corporation has shown an increasing trend over the past two years, from 1.28 in 2022 to 3.31 in 2023. This indicates that the company is managing its accounts payable more efficiently in 2023 compared to the prior year. The significant improvement in the payables turnover ratio suggests that MP Materials is paying off its suppliers more frequently during the year, which can enhance supplier relationships and potentially lead to favorable credit terms.
It is notable that the payables turnover ratio was not reported for 2021 and 2020, which may indicate a lack of disclosure or specific reporting reasons for those years. Overall, the increasing trend in the payables turnover ratio for MP Materials Corporation reflects a positive shift towards more effective management of its trade payables.
Peer comparison
Dec 31, 2023