MP Materials Corp (MP)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | 203,855 | 184,074 | 173,663 | 206,429 | 253,445 | 305,485 | 377,414 | 456,952 | 527,510 | 533,374 | 508,683 | 438,239 | 331,952 | 275,021 | 216,289 | 173,562 | 134,310 | 113,180 | 99,074 | 81,407 |
| Total current assets | US$ in thousands | 1,031,320 | 1,017,180 | 1,090,640 | 1,106,200 | 1,131,180 | 1,188,310 | 1,223,880 | 1,267,390 | 1,293,830 | 1,356,780 | 1,348,870 | 1,316,470 | 1,276,810 | 1,255,550 | 1,246,110 | 1,239,120 | 561,047 | 73,668 | 70,688 | 2,757 |
| Total current liabilities | US$ in thousands | 164,019 | 146,789 | 158,078 | 107,546 | 108,550 | 97,012 | 75,773 | 93,874 | 97,481 | 74,746 | 66,147 | 51,575 | 59,543 | 70,767 | 90,287 | 72,921 | 43,061 | 65,832 | 55,637 | 55,637 |
| Working capital turnover | 0.24 | 0.21 | 0.19 | 0.21 | 0.25 | 0.28 | 0.33 | 0.39 | 0.44 | 0.42 | 0.40 | 0.35 | 0.27 | 0.23 | 0.19 | 0.15 | 0.26 | 14.44 | 6.58 | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $203,855K ÷ ($1,031,320K – $164,019K)
= 0.24
The working capital turnover ratio for MP Materials Corp has experienced fluctuations over the reporting periods. The ratio indicates how efficiently the company is utilizing its working capital to generate sales.
In March 2020, the working capital turnover ratio was not available. However, it increased significantly to 6.58 by June 2020, suggesting a more efficient use of working capital during that period. The ratio continued to rise to 14.44 by September 2020, indicating a substantial improvement in working capital efficiency.
However, there was a sharp decline in the ratio to 0.26 by December 2020 and further decreases in the subsequent quarters until March 2021. This suggests that the company may have faced challenges in managing its working capital effectively during this period.
From June 2021 onwards, the working capital turnover ratio gradually increased, reaching 0.44 by December 2022. This indicates a recovery in the efficiency of working capital utilization. Subsequently, the ratio fluctuated but remained within a narrow range between 0.19 and 0.28 until December 2024.
Overall, the working capital turnover ratio of MP Materials Corp reflects a mix of efficient and inefficient use of working capital over the reporting periods, with the company showing improvements in certain quarters but facing challenges in others.
Peer comparison
Dec 31, 2024