MP Materials Corp (MP)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 203,855 | 253,445 | 527,510 | 331,952 | 134,310 |
| Total current assets | US$ in thousands | 1,031,320 | 1,131,180 | 1,293,830 | 1,276,810 | 561,047 |
| Total current liabilities | US$ in thousands | 164,019 | 108,550 | 97,481 | 59,543 | 43,061 |
| Working capital turnover | 0.24 | 0.25 | 0.44 | 0.27 | 0.26 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $203,855K ÷ ($1,031,320K – $164,019K)
= 0.24
The working capital turnover of MP Materials Corp has shown fluctuations over the period analyzed. It increased from 0.26 in December 31, 2020, to 0.27 in December 31, 2021, which indicates a slight improvement in the efficiency of the company in utilizing its working capital during that period.
However, there was a significant increase in the working capital turnover to 0.44 in December 31, 2022, suggesting a substantial improvement in the efficiency of converting working capital into revenue during that year. This may reflect better management of current assets and liabilities to support the company's operations.
Subsequently, the working capital turnover decreased to 0.25 in December 31, 2023, and further declined to 0.24 in December 31, 2024. These lower ratios indicate a potential slowdown in the company's ability to efficiently utilize its working capital in generating revenue.
Overall, MP Materials Corp's working capital turnover has shown fluctuations, with a notable improvement in 2022 but declines in the subsequent years. Monitoring this ratio can provide insights into the company's effectiveness in managing its working capital and operational efficiency over time.
Peer comparison
Dec 31, 2024