MP Materials Corp (MP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 263,351 | 136,627 | 1,179,300 | 519,652 |
| Short-term investments | US$ in thousands | 734,493 | 1,045,720 | — | — |
| Total current liabilities | US$ in thousands | 108,550 | 97,481 | 59,543 | 43,061 |
| Cash ratio | 9.19 | 12.13 | 19.81 | 12.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($263,351K
+ $734,493K)
÷ $108,550K
= 9.19
The cash ratio for MP Materials Corporation has been fluctuating over the past four years. It stood at 9.45 in 2023, showing a decrease from the previous year's ratio of 12.32 in 2022. However, comparing it to 2021 and 2020, the cash ratio was significantly higher at 19.94 and 12.20, respectively. The cash ratio measures a company's ability to cover its short-term obligations with its available cash and cash equivalents, indicating its liquidity position. The decreasing trend in the cash ratio from 2021 to 2023 may suggest the company's declining ability to meet its short-term liabilities solely with cash on hand. Further analysis of the company's cash flow and liquidity management practices could provide insights into these changes.
Peer comparison
Dec 31, 2023