MP Materials Corp (MP)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | -17,719 | 327,411 | 165,345 | -34,703 |
| Revenue | US$ in thousands | 247,383 | 521,333 | 331,952 | 134,310 |
| Operating profit margin | -7.16% | 62.80% | 49.81% | -25.84% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-17,719K ÷ $247,383K
= -7.16%
MP Materials Corporation's operating profit margin has shown significant fluctuations over the past four years. In 2020, the operating profit margin was relatively low at 25.55%, indicating that the company was generating a lower percentage of operating profit from its revenue.
However, the following year, in 2021, there was a substantial improvement in the operating profit margin to 50.35%, reflecting a significant increase in profitability compared to the previous year. This suggests that the company was able to control its operating expenses more effectively and generate more profit from its operations.
In 2022, the operating profit margin surged to 62.14%, indicating that the company experienced even higher profitability, possibly due to increased revenue, better cost management, or a combination of both factors.
However, in 2023, there was a sharp decline in the operating profit margin to -6.99%. This negative operating profit margin suggests that the company may have incurred operating losses during this period, where its operating expenses exceeded its operating income.
Overall, the fluctuating trend in MP Materials Corporation's operating profit margin over the years indicates varying levels of operational efficiency and profitability. It is essential for the company to analyze the underlying reasons behind these fluctuations to implement appropriate strategies for sustainable profitability in the future.
Peer comparison
Dec 31, 2023