MP Materials Corp (MP)
Operating profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -161,325 | -150,991 | -128,987 | -77,652 | -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 | -40,830 | -55,076 | 597 |
| Revenue (ttm) | US$ in thousands | 203,855 | 184,074 | 173,663 | 206,429 | 253,445 | 305,485 | 377,414 | 456,952 | 527,510 | 533,374 | 508,683 | 438,239 | 331,952 | 275,021 | 216,289 | 173,562 | 134,310 | 113,180 | 99,074 | 81,407 |
| Operating profit margin | -79.14% | -82.03% | -74.27% | -37.62% | -6.99% | 17.47% | 39.76% | 53.69% | 62.07% | 65.06% | 63.29% | 59.02% | 49.81% | 42.18% | 36.09% | -9.01% | -25.84% | -36.08% | -55.59% | 0.73% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-161,325K ÷ $203,855K
= -79.14%
MP Materials Corp's operating profit margin has shown significant fluctuations over the period under review. The company started with a low operating profit margin of 0.73% in March 2020, which deteriorated sharply to negative figures in the following quarters. MP Materials Corp struggled with negative operating profit margins throughout 2020 and early 2021, indicating challenges in managing its operating expenses relative to its revenues.
However, there was a notable improvement in the operating profit margin in the second half of 2021, with positive figures ranging from 36.09% to 65.06% by September 2022. This positive trend continued until the first quarter of 2023 when the operating profit margin peaked at 65.06%. Subsequently, the operating profit margin started to decline, reaching 17.47% by September 2023.
The company faced a significant setback in the following quarters as the operating profit margin turned negative again, reaching a low of -82.03% by September 2024. This downward trend continued with operating profit margins remaining in the negative territory until the end of December 2024.
Overall, MP Materials Corp's operating profit margin has exhibited volatility, reflecting challenges in maintaining profitability during certain periods, but also demonstrating improvements and periods of strong performance. Monitoring and managing operating expenses will be crucial for the company to sustain positive operating profit margins in the future.
Peer comparison
Dec 31, 2024