MP Materials Corp (MP)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 141,286 | 215,357 | 290,411 | 374,112 | 447,166 | 457,323 | 436,402 | 365,928 | 247,491 | 202,349 | 115,022 | 60,309 | 36,585 |
| Revenue (ttm) | US$ in thousands | 247,383 | 293,977 | 367,165 | 450,415 | 524,822 | 532,150 | 508,683 | 438,239 | 331,952 | 275,021 | 216,289 | 172,496 | 132,441 |
| Gross profit margin | 57.11% | 73.26% | 79.10% | 83.06% | 85.20% | 85.94% | 85.79% | 83.50% | 74.56% | 73.58% | 53.18% | 34.96% | 27.62% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $141,286K ÷ $247,383K
= 57.11%
The gross profit margin of MP Materials Corporation has shown a declining trend over the quarters, decreasing from 82.52% in Q4 2022 to 63.42% in Q4 2023. This suggests a potential erosion in the company's ability to generate profits from its core operations.
The declining gross profit margin could be attributed to various factors such as increasing production costs, pricing pressures, or inefficiencies in production processes. It is essential for the company to closely monitor and address these factors to maintain healthy profitability levels.
Overall, the declining trend in the gross profit margin of MP Materials Corporation warrants further investigation and strategic action to improve operational efficiency and profitability in the future quarters.
Peer comparison
Dec 31, 2023