MP Materials Corp (MP)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 247,383 | 293,977 | 367,165 | 450,415 | 524,822 | 532,150 | 508,683 | 438,239 | 331,952 | 275,021 | 216,289 | 172,496 | 132,441 | |||
| Receivables | US$ in thousands | 29,331 | 17,308 | 15,233 | 22,972 | 35,057 | 19,875 | 37,019 | 37,108 | 51,009 | 37,095 | 8,178 | 13,925 | 3,589 | — | — | — |
| Receivables turnover | 8.43 | 16.99 | 24.10 | 19.61 | 14.97 | 26.77 | 13.74 | 11.81 | 6.51 | 7.41 | 26.45 | 12.39 | 36.90 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $247,383K ÷ $29,331K
= 8.43
MP Materials Corporation's receivables turnover ratio has shown fluctuations over the recent quarters. In Q4 2023, the receivables turnover ratio stood at 25.27, which was higher compared to the previous quarter Q3 2023 at 17.65. This indicates that the company collected its accounts receivables approximately 25.27 times during Q4 2023, reflecting effective management of credit sales and collections.
The receivables turnover ratio had also been relatively high in Q2 2023 at 24.78 and Q3 2022 at 26.84, suggesting efficient credit management practices during those periods. However, there were notable drops in turnover in Q1 2023 at 19.89 and in Q4 2022 at 15.05, indicating potential delays in collecting accounts receivables during those quarters.
Overall, the upward trend in the receivables turnover ratio in Q4 2023 compared to the previous quarter is a positive sign of the company's ability to efficiently collect its outstanding customer balances. Continued monitoring of this ratio will be important to assess the effectiveness of MP Materials Corporation's credit management strategies in ensuring timely collection of receivables.
Peer comparison
Dec 31, 2023