MP Materials Corp (MP)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -66,788 | 105,022 | 416,936 | 231,317 | 31,912 |
| Revenue | US$ in thousands | 203,855 | 253,445 | 527,510 | 331,952 | 134,310 |
| Gross profit margin | -32.76% | 41.44% | 79.04% | 69.68% | 23.76% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-66,788K ÷ $203,855K
= -32.76%
The gross profit margin of MP Materials Corp has exhibited significant fluctuation over the years. It increased from 23.76% as of December 31, 2020, to 69.68% by December 31, 2021, and further rose to 79.04% by December 31, 2022, indicating improved efficiency in generating revenue after accounting for direct production costs.
However, the trend reversed in the following years, as the gross profit margin dropped to 41.44% by December 31, 2023. The most concerning development was observed by December 31, 2024, where the gross profit margin turned negative at -32.76%. This negative value suggests that the company's direct production costs exceeded its revenue from sales, resulting in an unsustainable operational scenario.
The significant decrease in the gross profit margin in the later years may raise concerns about the company's pricing strategy, cost management, or changes in the industry landscape affecting its profitability. Further analysis of the underlying factors contributing to these fluctuations would be essential to understand MP Materials Corp's financial performance and its prospects for future growth.
Peer comparison
Dec 31, 2024