MP Materials Corp (MP)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 6.29 | 6.93 | 6.90 | 10.29 | 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 | 1.12 | 1.27 | 0.05 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,031,320K ÷ $164,019K
= 6.29
The current ratio of MP Materials Corp has fluctuated over the past few years, indicating varying levels of short-term liquidity and ability to cover its current liabilities with its current assets.
As of December 31, 2024, the current ratio stood at 6.29, suggesting that the company had $6.29 in current assets for every $1 in current liabilities. This reflects a decline from the ratio's peak in March 31, 2022, where the current ratio was at 25.53, indicating a substantial increase in liquidity and ability to meet short-term obligations.
The current ratio experienced a downward trend from March 31, 2022, to June 30, 2024, indicating potential challenges in managing current assets and liabilities efficiently during this period. The ratio dropping below 1 in the first quarter of 2024 and remaining relatively low until the end of 2024 could raise concerns about the company's short-term financial health and ability to pay off its current liabilities.
Overall, fluctuations in the current ratio of MP Materials Corp warrant further investigation into the company's management of working capital, current asset levels, and liquidity position to assess its short-term financial stability and ability to meet its obligations as they come due.
Peer comparison
Dec 31, 2024