MP Materials Corp (MP)
Payables 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 | |||
| Payables | US$ in thousands | 27,995 | — | — | — | 15,326 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 2.18 | — | — | — | 5.07 | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $60,910K ÷ $27,995K
= 2.18
The payables turnover ratio for MP Materials Corporation has fluctuated over the past eight quarters. In Q4 2023, the payables turnover ratio was 3.31, indicating that the company is able to pay off its accounts payable obligations approximately 3.31 times during the quarter. This represents an improvement compared to the payables turnover ratio of 1.28 in Q4 2022. However, data for the other quarters is not available for comparison.
A higher payables turnover ratio generally suggests that a company is managing its accounts payable efficiently, potentially indicating strong supplier relationships, effective working capital management, or favorable credit terms. It is important for investors and analysts to monitor this ratio over time to assess the company's ability to manage its short-term liabilities effectively and maintain healthy liquidity.
Peer comparison
Dec 31, 2023