MP Materials Corp (MP)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 282,442 | 284,434 | 296,691 | 297,160 | 264,641 | 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 | -2,757 |
| Short-term investments | US$ in thousands | 568,426 | 582,056 | 641,398 | 650,299 | 734,493 | 536,994 | 200,828 | 517,831 | 1,045,720 | 836,288 | 599,666 | — | — | — | — | — | — | — | — | 5,514 |
| 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 |
| Cash ratio | 5.19 | 5.90 | 5.93 | 8.81 | 9.20 | 11.18 | 14.89 | 12.45 | 12.13 | 16.91 | 19.11 | 23.91 | 19.81 | 16.67 | 13.26 | 16.20 | 12.07 | 0.46 | 0.69 | 0.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($282,442K
+ $568,426K)
÷ $164,019K
= 5.19
The cash ratio of MP Materials Corp has fluctuated over the periods under review. Historically, the company's cash ratio has increased significantly from 0.05 as of March 31, 2020, to a peak of 23.91 as of March 31, 2022. This indicates an improvement in the company's liquidity position and its ability to cover short-term liabilities with its cash holdings.
However, the cash ratio has declined in subsequent periods, reaching 5.19 as of December 31, 2024. While the company's cash ratio remains above 1, indicating that it has sufficient cash to cover its current liabilities, the downward trend suggests a potential deterioration in liquidity over time.
Management should closely monitor the cash position of the company to ensure it maintains an adequate level of liquidity to meet its financial obligations and sustain its operations effectively. Additionally, strategic planning may be required to address any potential liquidity challenges and maintain a healthy cash position in the future.
Peer comparison
Dec 31, 2024