MP Materials Corp (MP)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($282,442K
+ $568,426K
+ $—K)
÷ $164,019K
= 5.19
MP Materials Corp's quick ratio has shown significant fluctuations over the analyzed period. The quick ratio, which measures the company's ability to meet its short-term liabilities with its most liquid assets, started at a very low level of 0.05 on March 31, 2020.
Subsequently, there was a notable improvement in liquidity, with the quick ratio increasing to 12.07 by the end of December 2020. This significant rise indicated a substantial increase in the company's ability to meet its short-term obligations with its quick assets.
The quick ratio continued to increase steadily over the following quarters, reaching its peak at 23.91 on March 31, 2022. This exceptionally high ratio could suggest that the company held a large amount of highly liquid assets relative to its current liabilities at that point.
However, there was a subsequent decline in the quick ratio, dropping to 5.19 by December 31, 2024. This decrease in the ratio may indicate a potential decrease in the company's liquidity or an increase in its short-term obligations compared to its quick assets.
Overall, the trend in MP Materials Corp's quick ratio indicates significant variability in the company's liquidity position over the analyzed period, with both positive and negative fluctuations observed. It is essential for stakeholders to monitor these changes to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024