MP Materials Corp (MP)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -169,426 | 22,280 | 327,411 | 165,345 | 25,232 |
| Revenue | US$ in thousands | 203,855 | 253,445 | 527,510 | 331,952 | 134,310 |
| Operating profit margin | -83.11% | 8.79% | 62.07% | 49.81% | 18.79% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-169,426K ÷ $203,855K
= -83.11%
MP Materials Corp has experienced fluctuations in its operating profit margin over the past five years.
In December 2020, the operating profit margin was 18.79%, showing a relatively healthy level of profitability. The company managed to significantly improve its operating profit margin by the end of December 2021, reaching a high of 49.81%. This strong performance indicated effective cost management and revenue generation strategies.
By December 2022, the operating profit margin continued to rise to an impressive 62.07%, showcasing the company's ability to efficiently convert sales into operating profits. However, there was a notable decline in the operating profit margin by December 2023, dropping to 8.79%. This decrease could suggest challenges in controlling costs or generating sufficient revenues.
The situation worsened significantly by December 2024, with the operating profit margin plummeting to -83.11%. A negative operating profit margin indicates that the company's operating expenses exceeded its revenues, resulting in a loss from its core business operations.
In conclusion, while MP Materials Corp demonstrated strong profitability in the past, there have been recent challenges impacting its operating profit margin. It will be crucial for the company to address these issues and implement corrective measures to improve its financial performance in the future.
Peer comparison
Dec 31, 2024