MP Materials Corp (MP)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 164,299 | 443,677 | 270,196 | 33,465 |
| Revenue | US$ in thousands | 247,383 | 521,333 | 331,952 | 134,310 |
| Gross profit margin | 66.41% | 85.10% | 81.40% | 24.92% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $164,299K ÷ $247,383K
= 66.41%
MP Materials Corporation's gross profit margin has displayed fluctuations over the past four years. It decreased from 52.50% in 2020 to 77.03% in 2021, indicating a significant improvement in the company's ability to generate profits from its core operations. However, the margin dropped to 82.52% in 2022, before declining further to 63.42% in 2023.
The declining trend in gross profit margin from 2022 to 2023 might suggest challenges in managing direct production costs or pricing pressures impacting profitability. Investors and stakeholders may need to delve deeper into the company's cost structure and revenue generation strategies to assess the sustainability of its profitability levels.
Peer comparison
Dec 31, 2023