MP Materials Corp (MP)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 1,243 | 1,881 | 566 |
| 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 |
| Current ratio | 10.42 | 12.25 | 16.15 | 13.50 | 13.27 | 18.15 | 20.39 | 25.53 | 21.44 | 17.74 | 13.80 | 16.99 | 13.03 | 0.35 | 1.75 | 1.03 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,131,180K ÷ $108,550K
= 10.42
The current ratio of MP Materials Corporation has shown a decreasing trend over the last four quarters, dropping from 25.53 in Q1 2022 to 10.42 in Q4 2023. Despite this decrease, the current ratio remains above 1 in all periods, indicating that the company's current assets continue to exceed its current liabilities by a considerable margin.
The current ratio reached its peak at 25.53 in Q1 2022 and has steadily declined since then. While a high current ratio suggests that the company has more than enough current assets to cover its short-term obligations, a very high ratio may indicate inefficient use of assets.
The decreasing trend in the current ratio may signal a change in the company's liquidity position or management of current assets and liabilities. It is essential for investors and stakeholders to monitor this ratio over time to assess the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023