MP Materials Corp (MP)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 33,075 | 341,152 | 160,195 | -39,461 |
| Revenue | US$ in thousands | 247,383 | 521,333 | 331,952 | 134,310 |
| Pretax margin | 13.37% | 65.44% | 48.26% | -29.38% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $33,075K ÷ $247,383K
= 13.37%
MP Materials Corporation's pretax margin has exhibited significant fluctuations over the past four years. In 2023, the pretax margin stood at 13.05%, representing a substantial decrease from the previous year's level of 64.67%. This decline suggests a notable decrease in the company's profitability before accounting for taxes. The pretax margin in 2023 is significantly lower compared to 2022 and falls below the levels observed in 2021 and 2020. It is important for the company to assess the factors contributing to this decline in profitability and implement strategies to improve its pretax margin in the future to ensure sustainable financial performance.
Peer comparison
Dec 31, 2023