MP Materials Corp (MP)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 247,383 | 521,333 | 331,952 | 134,310 |
| Total assets | US$ in thousands | 2,336,450 | 2,237,790 | 1,889,670 | 1,074,290 |
| Total asset turnover | 0.11 | 0.23 | 0.18 | 0.13 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $247,383K ÷ $2,336,450K
= 0.11
The total asset turnover of MP Materials Corporation has fluctuated over the past four years. The ratio was relatively low at 0.13 in 2020 and increased significantly to 0.18 in 2021. Further improvement was seen in 2022 with a total asset turnover of 0.24, indicating that the company was generating more revenue relative to its assets during that year. However, in 2023, the total asset turnover declined to 0.11, suggesting that the company's efficiency in utilizing its assets to generate revenue decreased compared to the previous year. It is important for MP Materials Corporation to closely monitor and analyze the factors that contributed to the fluctuation in total asset turnover to optimize its asset utilization and improve its financial performance.
Peer comparison
Dec 31, 2023