MP Materials Corp (MP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -32.76% | 41.44% | 79.04% | 69.68% | 23.76% |
| Operating profit margin | -83.11% | 8.79% | 62.07% | 49.81% | 18.79% |
| Pretax margin | -45.79% | 13.05% | 64.67% | 48.26% | -29.38% |
| Net profit margin | -32.09% | 9.59% | 54.79% | 40.68% | -16.25% |
MP Materials Corp's profitability ratios have shown significant fluctuations over the years based on the provided data.
1. Gross Profit Margin:
- The gross profit margin increased significantly from 23.76% in December 2020 to reach a peak of 79.04% in December 2022. However, it then decreased to 41.44% in 2023 before turning negative at -32.76% in December 2024. This indicates that the company experienced a substantial decline in its gross profitability in the last year.
2. Operating Profit Margin:
- The operating profit margin also displayed a similar trend, rising from 18.79% in December 2020 to a peak of 62.07% in 2022. However, it dropped to 8.79% in December 2023 and then significantly declined to -83.11% by December 2024. This suggests that the company's operational efficiency deteriorated rapidly in the most recent year.
3. Pretax Margin:
- The pretax margin fluctuated widely over the years, with a negative margin of -29.38% in December 2020, reaching a peak of 64.67% in 2022, before falling to 13.05% in December 2023, and becoming negative at -45.79% by December 2024. This indicates that the company faced challenges in generating profits before taxes in the last year.
4. Net Profit Margin:
- The net profit margin also showed variability, with a negative margin of -16.25% in December 2020, increasing to 54.79% in 2022, then dropping to 9.59% in December 2023, and becoming negative at -32.09% in December 2024. This implies that the company's bottom-line profitability decreased significantly in the most recent year.
In summary, MP Materials Corp's profitability ratios have been volatile, with significant declines in profitability observed in the most recent year, especially in gross, operating, pretax, and net profit margins. The company may need to address operational inefficiencies and cost structures to improve its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -7.26% | 0.95% | 14.63% | 8.75% | 2.35% |
| Return on assets (ROA) | -2.80% | 1.04% | 12.91% | 7.15% | -2.03% |
| Return on total capital | -6.67% | 2.81% | 26.43% | 16.76% | -4.03% |
| Return on equity (ROE) | -6.20% | 1.78% | 22.02% | 13.39% | -2.56% |
MP Materials Corp's profitability ratios have shown a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has seen an increasing trend from 2.35% in December 2020 to 14.63% in December 2022, indicating improved operational efficiency. However, there was a significant decline to 0.95% in December 2023 and turned negative at -7.26% by December 2024.
- Return on assets (ROA) experienced fluctuations, starting from -2.03% in December 2020 to a peak of 12.91% in December 2022, but then dropped to -2.80% by December 2024.
- Return on total capital showed a similar pattern with a negative -4.03% in December 2020, a peak of 26.43% in December 2022, and a decline to -6.67% in December 2024.
- Return on equity (ROE) displayed a negative -2.56% in December 2020, followed by improvements up to 22.02% in December 2022. However, it decreased to -6.20% by December 2024.
Overall, the company's profitability ratios reflect volatility in performance, with fluctuations in profitability metrics over the last five years.