MP Materials Corp (MP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 4.38% | 37.42% | 11.61% | 37.75% | 57.83% | 55.37% | 67.70% | 74.95% | 79.04% | 80.59% | 78.80% | 76.04% | 65.41% | 54.12% | 43.51% | 33.06% | 31.25% | 33.79% | 29.07% | 20.62% |
| 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% |
| Pretax margin | -45.79% | -43.48% | -28.59% | 5.53% | 13.05% | 33.00% | 50.19% | 59.77% | 64.67% | 65.39% | 62.16% | 57.71% | 48.26% | 40.64% | 34.54% | -11.97% | -29.38% | -39.49% | -56.91% | 0.58% |
| Net profit margin | -32.09% | -32.24% | -21.94% | 1.62% | 9.59% | 35.21% | 46.38% | 52.72% | 54.79% | 50.81% | 49.26% | 46.66% | 40.68% | 40.06% | 37.92% | -4.40% | -16.25% | -39.67% | -57.25% | 0.58% |
MP Materials Corp has shown a positive trend in its profitability ratios over the analyzed period. The gross profit margin has been increasing steadily from 20.62% in March 2020 to a peak of 80.59% in September 2022 before slightly declining to 57.83% in December 2023. However, there was a sharp drop to 4.38% by December 2024.
The operating profit margin started in negative territory but improved significantly over time. It reached a peak of 65.06% in September 2022 before decreasing to -79.14% by December 2024.
Similarly, the pretax margin and net profit margin followed a positive trajectory, with fluctuations along the way. The pretax margin reached its highest point of 65.39% in September 2022 before dropping to -45.79% by December 2024. The net profit margin also peaked at 54.79% in December 2022 before falling to -32.09% by December 2024.
Overall, while there were fluctuations in profitability margins, there was a general improvement in profitability up to the end of 2022, followed by a decline in profitability from 2023 onwards. Further analysis would be needed to understand the factors contributing to these trends and assess the company's overall financial health.
Return on investment
| 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 return on assets (Operating ROA) | -6.91% | -6.56% | -5.46% | -3.30% | -0.74% | 2.30% | 6.56% | 10.76% | 14.63% | 15.85% | 15.32% | 13.02% | 8.75% | 6.27% | 4.29% | -0.88% | -3.23% | -25.98% | -37.31% | — |
| Return on assets (ROA) | -2.80% | -2.58% | -1.61% | 0.14% | 1.02% | 4.63% | 7.64% | 10.56% | 12.91% | 12.38% | 11.92% | 10.29% | 7.15% | 5.96% | 4.51% | -0.43% | -2.03% | -28.57% | -38.43% | — |
| Return on total capital | -7.95% | -5.89% | -3.39% | 1.60% | 2.81% | 7.72% | 14.27% | 20.59% | 26.43% | 28.63% | 27.72% | 24.08% | 16.76% | 12.54% | 9.01% | -1.76% | -4.03% | — | — | — |
| Return on equity (ROE) | -6.20% | -5.57% | -3.44% | 0.29% | 1.78% | 7.82% | 12.82% | 17.82% | 22.02% | 21.81% | 21.40% | 18.75% | 13.39% | 11.55% | 9.05% | -0.87% | -2.56% | — | — | — |
MP Materials Corp has shown variability in its profitability ratios over the reported periods.
Operating Return on Assets (Operating ROA):
- The Operating ROA has improved significantly from negative percentages in mid-2020 to around 15-16% in 2022, but it started declining again in 2023 and 2024.
- This indicates that the company is generating operating profits from its assets, with a recent decline suggesting potential challenges in profitability.
Return on Assets (ROA):
- The ROA also displays a similar trend, with negative figures improving to around 10-12% in 2022 but declining again in 2023 and 2024.
- It suggests that the company is effectively utilizing its assets to generate profits, although recent decreases may be a concern for stakeholders.
Return on Total Capital:
- The Return on Total Capital has been more volatile, ranging from negative percentages to around 28-29% in mid-2022 before declining again.
- This ratio shows the company's ability to generate returns from its total invested capital, with recent decreases indicating challenges in capital efficiency.
Return on Equity (ROE):
- The ROE shows a similar pattern of improvement followed by decline, with percentages ranging from negative values to around 22% in late 2022.
- It reflects the company's profitability in relation to shareholders' equity, with recent decreases suggesting a potential impact on shareholder returns.
Overall, while MP Materials Corp has shown improvements in profitability ratios, the recent declines may indicate challenges in sustaining or enhancing profitability in the future. Further analysis of the company's financial performance and operational efficiency may be necessary to understand the underlying factors driving these trends.