MP Materials Corp (MP)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,333,560 | 2,336,450 | 2,237,790 | 1,889,670 | 1,074,290 |
| Operating ROA | -7.26% | 0.95% | 14.63% | 8.75% | 2.35% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-169,426K ÷ $2,333,560K
= -7.26%
MP Materials Corp's operating return on assets (Operating ROA) has shown significant fluctuations over the years.
From December 31, 2020, to December 31, 2021, there was a notable increase in the Operating ROA from 2.35% to 8.75%, indicating an improvement in the company's operating efficiency and profitability during this period. This suggests that the company was able to generate more operating income relative to its assets in 2021 compared to 2020.
The following year, from December 31, 2021, to December 31, 2022, there was another substantial increase in the Operating ROA to 14.63%. This sharp rise demonstrates further enhancement in the company's operational performance, as it achieved a higher return on its assets in 2022.
However, by December 31, 2023, the Operating ROA dropped to 0.95%, indicating a decline in the company's ability to generate operating income from its assets compared to the previous year. This could be a result of various factors such as increased operating expenses or a decrease in revenue.
Furthermore, by December 31, 2024, the Operating ROA turned negative, at -7.26%. A negative Operating ROA suggests that the company's operational performance resulted in a loss relative to its assets during this period. This could signal financial challenges or inefficiencies within the company.
Overall, the analysis of MP Materials Corp's Operating ROA indicates fluctuations in the company's operational efficiency and profitability over the years, with notable improvements followed by a decline and eventually a negative return on assets. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and performance.
Peer comparison
Dec 31, 2024