MP Materials Corp (MP)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -17,719 | 53,375 | 150,078 | 245,349 | 327,411 | 347,023 | 321,949 | 258,660 | 165,345 | 116,008 | 78,069 | -15,640 | -34,703 |
| 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 |
| Operating profit margin | -7.16% | 18.16% | 40.87% | 54.47% | 62.39% | 65.21% | 63.29% | 59.02% | 49.81% | 42.18% | 36.09% | -9.07% | -26.20% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-17,719K ÷ $247,383K
= -7.16%
MP Materials Corporation's operating profit margin has shown a decreasing trend over the past few quarters. In Q4 2023, the operating profit margin dropped significantly to -6.99%, indicating that the company's operating expenses exceeded its operating income. This decline followed a downward trend from the previous quarter's 19.53%, which itself was a notable decrease from the high levels seen in the first half of 2023.
Comparing Q4 2023 to the same quarter in the previous year, there has been a substantial decrease from an operating profit margin of 62.14% in Q4 2022. This suggests a significant deterioration in the company's profitability over this one-year period.
It is important to note that a negative operating profit margin, as seen in Q4 2023, is not sustainable in the long run and may indicate financial challenges or inefficiencies within the company's operations. Management should closely monitor and address the factors contributing to this decline to ensure the company's profitability and financial health.
Peer comparison
Dec 31, 2023