MP Materials Corp (MP)
Working capital 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 current assets | US$ in thousands | 1,131,180 | 1,293,830 | 1,276,810 | 561,047 |
| Total current liabilities | US$ in thousands | 108,550 | 97,481 | 59,543 | 43,061 |
| Working capital turnover | 0.24 | 0.44 | 0.27 | 0.26 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $247,383K ÷ ($1,131,180K – $108,550K)
= 0.24
MP Materials Corporation's working capital turnover has shown some fluctuation over the past four years. The ratio decreased from 0.44 in 2022 to 0.27 in 2021 before slightly increasing to 0.26 in 2020. In 2023, the working capital turnover further decreased to 0.25. This indicates that the company is generating $0.25 of revenue for every dollar of working capital invested. The declining trend in working capital turnover suggests that the company may be struggling to efficiently utilize its working capital to generate revenue, which could be a concern for its overall financial performance and liquidity management. Further analysis of the company's operational efficiency and working capital management practices may be necessary to address potential inefficiencies and improve financial performance.
Peer comparison
Dec 31, 2023