MP Materials Corp (MP)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 0.24 | 0.21 | 0.19 | 0.21 | 0.25 | 0.28 | 0.33 | 0.39 | 0.44 | 0.42 | 0.40 | 0.35 | 0.27 | 0.23 | 0.19 | 0.15 | 0.26 | 14.44 | 6.58 | — |
MP Materials Corp's inventory turnover has been fluctuating over the years, starting at 2.17 in March 2020, reaching a peak of 3.70 in September 2021, but declining thereafter to 1.81 in December 2024. This indicates the company's efficiency in managing its inventory levels and converting them into sales.
On the other hand, the receivables turnover and payables turnover ratios are not available, which may suggest that MP Materials Corp does not provide credit terms to customers or does not have significant payables that impact its operations.
The working capital turnover, which measures how efficiently the company is able to generate revenue relative to its working capital, has shown an upward trend since June 2020, indicating improvements in operational efficiency. However, there was a slight decrease in this ratio towards the end of the period, with the ratio dropping from 0.40 in June 2022 to 0.24 in December 2024.
Overall, MP Materials Corp's activity ratios suggest varying levels of efficiency in managing its inventory and working capital over the years, with room for improvement in some areas to optimize its operational performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 202.06 | 369.78 | 274.36 | 308.19 | 325.08 | 206.62 | 202.98 | 197.05 | 189.98 | 217.36 | 142.95 | 137.75 | 123.01 | 98.72 | 106.05 | 110.27 | 127.56 | 151.19 | 154.32 | 167.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
MP Materials Corp's Days of Inventory on Hand (DOH) has shown fluctuations over the years, ranging from 110.27 days on March 31, 2021, to a peak of 369.78 days on September 30, 2024. This metric indicates the average number of days the company holds inventory before it is sold, reflecting changes in the efficiency of inventory management.
In contrast, the Days of Sales Outstanding (DSO) and Number of Days of Payables information is not available for analysis. These metrics typically provide insights into how quickly the company collects payments from customers and how long it takes to pay its suppliers, respectively. The absence of data for these metrics limits a comprehensive assessment of the company's working capital management.
Overall, the significant variation in MP Materials Corp's Days of Inventory on Hand suggests potential challenges in optimizing inventory levels to meet demand efficiently. Further data on DSO and payables days would provide a more complete picture of the company's operational efficiency and cash flow management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 0.28 | 0.36 | 0.45 | 0.56 | 0.64 | 0.68 | 0.66 | 0.54 | 0.47 | 0.38 | 0.32 | 0.27 | 1.97 | 2.01 | 1.65 |
| Total asset turnover | 0.09 | 0.08 | 0.07 | 0.09 | 0.11 | 0.13 | 0.16 | 0.20 | 0.24 | 0.24 | 0.24 | 0.22 | 0.18 | 0.15 | 0.12 | 0.10 | 0.13 | 0.72 | 0.67 | — |
The fixed asset turnover ratio for MP Materials Corp has fluctuated over the years analyzed, starting at 1.65 in March 2020 and peaking at 2.01 in June 2020. However, the ratio showed a significant decline towards the end of 2020, dropping to 0.27 in December 2020 and remaining low until June 2022. There was a slight improvement in the ratio from September 2022 to March 2024, but it stayed relatively low overall.
On the other hand, the total asset turnover ratio started at an unreported value in March 2020 and gradually increased over time, reaching 0.18 by December 2021. The ratio remained relatively stable from March 2022 to December 2023 before showing a decreasing trend in the last two quarters reported.
Overall, the fixed asset turnover ratio indicates how efficiently MP Materials Corp is utilizing its fixed assets to generate revenue, while the total asset turnover ratio reflects the company's ability to generate sales in relation to its total assets. The declining trend in both ratios in recent periods may indicate a need for further analysis to understand the company's operational efficiency and asset utilization.