MP Materials Corp (MP)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 263,351 | 547,668 | 927,245 | 651,215 | 136,627 | 427,969 | 664,457 | 1,233,300 | 1,179,300 | 1,179,370 | 1,196,880 | 1,181,520 | 519,652 | 30,244 | 38,551 | 5,378 |
| Short-term investments | US$ in thousands | 734,493 | 536,994 | 200,828 | 517,831 | 1,045,720 | 836,288 | 599,666 | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 3,533 | 1,072 | 547 |
| Cash ratio | 9.19 | 11.18 | 14.89 | 12.45 | 12.13 | 16.91 | 19.11 | 23.91 | 19.81 | 16.67 | 13.26 | 16.20 | 12.07 | 8.56 | 35.96 | 9.83 |
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 of MP Materials Corporation has exhibited fluctuations over the past eight quarters. The company's cash ratio in Q4 2023 stood at 9.45, a decrease from the previous quarter's 11.28. This indicates a lower ability in Q4 2023 to cover its short-term liabilities with cash as compared to the previous quarter.
Looking further back, the cash ratio has shown a declining trend from Q2 2022 to Q4 2023. This could imply potential liquidity concerns as the company's ability to meet its immediate financial obligations with its available cash has weakened over time.
Despite the recent decline, it is worth noting that MP Materials Corporation has historically maintained relatively strong cash ratios above 10 for most quarters, indicating a generally healthy liquidity position. However, the downward trend in the cash ratio warrants close monitoring to ensure the company can effectively manage its short-term liquidity needs in the future.
Peer comparison
Dec 31, 2023