MP Materials Corp (MP)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 8,938 | 68,882 | 20,157 | 77,919 | 146,576 | 169,143 | 255,527 | 342,473 | 416,936 | 429,859 | 400,823 | 333,257 | 217,141 | 148,843 | 94,101 | 57,382 | 41,967 | 38,246 | 28,799 | 16,790 |
| Revenue (ttm) | US$ in thousands | 203,855 | 184,074 | 173,663 | 206,429 | 253,445 | 305,485 | 377,414 | 456,952 | 527,510 | 533,374 | 508,683 | 438,239 | 331,952 | 275,021 | 216,289 | 173,562 | 134,310 | 113,180 | 99,074 | 81,407 |
| Gross profit margin | 4.38% | 37.42% | 11.61% | 37.75% | 57.83% | 55.37% | 67.70% | 74.95% | 79.04% | 80.59% | 78.80% | 76.04% | 65.41% | 54.12% | 43.51% | 33.06% | 31.25% | 33.79% | 29.07% | 20.62% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $8,938K ÷ $203,855K
= 4.38%
The gross profit margin of MP Materials Corp has seen fluctuations over the past few years. It started at 20.62% in March 2020 and increased steadily to peak at 80.59% in September 2022 before declining. By December 2024, the gross profit margin had dropped significantly to 4.38%.
The rising trend in the gross profit margin from March 2020 to September 2022 indicates that the company was effectively managing its cost of goods sold relative to its net sales. However, the subsequent decrease in the margin suggests a potential increase in production costs or a decline in sales prices.
Overall, a high gross profit margin is generally considered positive as it reflects the company's ability to generate profit from its core operations. However, the significant drop in the margin towards the end of the period could be a cause for concern and may warrant further investigation into the factors influencing the company's cost structure and pricing strategies.
Peer comparison
Dec 31, 2024