MP Materials Corp (MP)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 24,307 | 289,004 | 135,037 | -21,825 |
| Revenue | US$ in thousands | 247,383 | 521,333 | 331,952 | 134,310 |
| Net profit margin | 9.83% | 55.44% | 40.68% | -16.25% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $24,307K ÷ $247,383K
= 9.83%
The net profit margin of MP Materials Corporation has shown significant fluctuations over the past four years. In 2023, the net profit margin stood at 9.59%, reflecting a decrease from the exceptionally high margin of 54.79% in 2022. This substantial decline in profitability may raise concerns about the company's cost management and revenue generation efficiency. Comparing to 2021, where the net profit margin was 40.68%, the 2023 figure indicates a notable reduction in profitability.
It is noteworthy that in 2020, the net profit margin was negative, at -16.25%. This suggests that the company incurred more expenses than its generated revenues, resulting in a loss for that period. The company's ability to improve and maintain positive net profit margins in subsequent years demonstrates its capacity to enhance operational efficiency and profitability, albeit the recent decline.
Overall, the fluctuations in MP Materials Corporation's net profit margin highlight the importance of closely monitoring and managing the company's profitability to ensure sustainable financial performance.
Peer comparison
Dec 31, 2023