MP Materials Corp (MP)
Total asset 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 | |||
| Total assets | US$ in thousands | 2,336,450 | 2,322,220 | 2,289,440 | 2,281,100 | 2,237,790 | 2,189,160 | 2,101,240 | 1,987,210 | 1,889,670 | 1,849,450 | 1,817,960 | 1,782,530 | 1,074,290 | 346,312 | 346,918 | 566 |
| Total asset turnover | 0.11 | 0.13 | 0.16 | 0.20 | 0.23 | 0.24 | 0.24 | 0.22 | 0.18 | 0.15 | 0.12 | 0.10 | 0.12 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $247,383K ÷ $2,336,450K
= 0.11
Total asset turnover measures the efficiency with which a company generates sales revenue from its total assets. A higher total asset turnover ratio indicates that the company is utilizing its assets more effectively to generate sales.
Looking at the data provided for MP Materials Corporation, we see a declining trend in total asset turnover from Q1 2023 to Q4 2023. In Q1 2023, the total asset turnover was 0.20, indicating that the company generated $0.20 in sales for every dollar of assets. However, this ratio decreased to 0.11 by Q4 2023, suggesting that the company's efficiency in generating sales from its assets declined significantly during this period.
Comparing year-over-year performance, in Q4 2022, the total asset turnover was 0.24, which was higher than any quarter in 2023. This indicates that MP Materials Corporation was more efficient in generating sales from its assets in the same quarter the previous year.
Overall, the decreasing trend in total asset turnover for MP Materials Corporation raises concerns about the company's ability to effectively utilize its assets to generate sales revenue. Further analysis and investigation into the company's operational efficiency and asset management practices are warranted to address this decline.
Peer comparison
Dec 31, 2023