MP Materials Corp (MP)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,336,450 | 2,237,790 | 1,889,670 | 1,074,290 |
| Operating ROA | -0.76% | 14.63% | 8.75% | -3.23% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-17,719K ÷ $2,336,450K
= -0.76%
Based on the operating return on assets (operating ROA) data provided for MP Materials Corporation over the four-year period from December 31, 2020, to December 31, 2023, there are some notable trends to consider.
In 2020, the operating ROA was at 3.19%, indicating that for every dollar of assets the company owned, it generated a return of approximately 3.19% from its operations. However, there was a significant improvement in 2021, where the operating ROA increased to 8.85%, reflecting better operational efficiency and profitability compared to the previous year.
The positive trend continued in 2022, with a further increase in operating ROA to 14.65%. This surge suggests that the company was able to make more efficient use of its assets to generate higher returns from its core operations. However, in 2023, there was a notable decline in the operating ROA, dropping to -0.76%. This negative value indicates that the company's operating income was insufficient to cover the cost of assets, resulting in a loss from core operations.
Overall, the fluctuation in MP Materials Corporation's operating ROA over the four-year period may be indicative of varying levels of operational efficiency and profitability. Further analysis of the company's financial performance and operational strategies would be necessary to better understand the drivers behind these changes and to assess the company's future prospects.
Peer comparison
Dec 31, 2023