MP Materials Corp (MP)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,336,450 | 2,322,220 | 2,289,440 | 2,281,100 | 2,237,790 | 2,189,160 | 2,101,240 | 1,987,210 | 1,889,670 | 1,849,450 | 1,817,960 | 1,782,530 | 1,074,290 |
| Operating ROA | -0.76% | 2.30% | 6.56% | 10.76% | 14.63% | 15.85% | 15.32% | 13.02% | 8.75% | 6.27% | 4.29% | -0.88% | -3.23% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-17,719K ÷ $2,336,450K
= -0.76%
MP Materials Corporation's operating return on assets (operating ROA) has exhibited a declining trend over the last few quarters, with Q4 2023 registering a negative operating ROA of -0.76%. This indicates that the company's operating income generated from its assets was insufficient to cover the asset base during that period.
The previous quarter, Q3 2023, saw an improvement in operating ROA to 2.57%, but this figure remains relatively low compared to previous periods. The trend continues with Q2 and Q1 2023 showing further increases in operating ROA to 6.78% and 10.88%, respectively, though still below the levels seen in earlier periods.
Looking back to Q4 2022, the company reported a significantly higher operating ROA of 14.65%, which has been gradually decreasing over the subsequent quarters. In Q3 and Q2 2022, the operating ROA was relatively stable around the mid-to-high 15% range before experiencing a slight drop in Q1 2022 to 13.11%.
Overall, the declining trend in operating ROA for MP Materials Corporation indicates a decreasing efficiency in generating operating income from its asset base over the past few quarters, signaling a potential concern that would require further investigation and strategic action to improve profitability and asset utilization ratios.
Peer comparison
Dec 31, 2023