MP Materials Corp (MP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 57.11% | 73.26% | 79.10% | 83.06% | 85.20% | 85.94% | 85.79% | 83.50% | 74.56% | 73.58% | 53.18% | 34.96% | 27.62% |
| Operating profit margin | -7.16% | 18.16% | 40.87% | 54.47% | 62.39% | 65.21% | 63.29% | 59.02% | 49.81% | 42.18% | 36.09% | -9.07% | -26.20% |
| Pretax margin | 13.37% | 34.30% | 51.59% | 60.64% | 65.00% | 65.54% | 62.16% | 57.71% | 48.26% | 40.64% | 34.54% | -12.04% | -29.80% |
| Net profit margin | 9.83% | 36.59% | 47.67% | 53.48% | 55.07% | 50.92% | 49.26% | 46.66% | 40.68% | 40.06% | 37.92% | -4.42% | -16.48% |
MP Materials Corporation's profitability ratios have shown fluctuations over the past eight quarters.
Starting with the gross profit margin, the company's profitability from sales has experienced a declining trend, dropping from 82.52% in Q4 2022 to 63.42% in Q4 2023. This suggests the company may be facing challenges in managing its cost of goods sold or pricing strategies.
Moving on to the operating profit margin, the company experienced a significant decrease from 62.14% in Q4 2022 to -6.99% in Q4 2023, indicating declining operational efficiency and increasing operating expenses.
The pretax margin, which reflects the company's profitability before taxes, has also fluctuated over the quarters. The pretax margin was highest in Q1 2023 at 59.77% but fell to 13.05% in Q4 2023, signaling potential issues with managing expenses or generating sufficient revenue.
Lastly, the net profit margin, which measures the company's overall profitability after all expenses have been deducted, has shown variability, with the highest level at 54.79% in Q4 2022 and the lowest at 9.59% in Q4 2023. This suggests that the company may be facing challenges in controlling costs and improving bottom-line performance.
Overall, MP Materials Corporation's profitability ratios indicate a need for closer examination of cost management, operational efficiency, and revenue generation strategies to enhance overall profitability and financial health.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.04% | 4.63% | 7.64% | 10.56% | 12.91% | 12.38% | 11.92% | 10.29% | 7.15% | 5.96% | 4.51% | -0.43% | -2.03% |
| Return on total capital | -0.87% | 2.59% | 7.34% | 12.08% | 16.44% | 18.08% | 17.44% | 14.85% | 10.04% | 7.35% | 5.17% | -1.00% | -4.03% |
| Return on equity (ROE) | 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 Corporation's profitability ratios show fluctuations over the past eight quarters. The Operating Return on Assets (Operating ROA) has been inconsistent, ranging from -0.76% to 14.65%, with a general downward trend in recent quarters. This indicates that the company's operating income generated from its assets has been inconsistent.
The Return on Assets (ROA) metric also shows variability, ranging from 1.04% to 12.91%. Although there is some fluctuation, the ROA has generally been positive, indicating the company's ability to generate profits from its total assets, with a decreasing trend in recent quarters.
Return on Total Capital demonstrates a similar pattern, with values ranging from -0.87% to 18.08%. The metric shows the company's ability to generate returns from both debt and equity capital, with a decreasing trend in recent quarters.
Return on Equity (ROE) highlights the shareholders' return on their investment and ranges from 1.78% to 22.02%. This metric shows a more consistent positive trend compared to the other ratios, indicating that the company has been successful in generating returns for its equity investors.
Overall, the company's profitability indicators reveal fluctuations and slight downward trends in recent quarters. It may be essential for MP Materials Corporation to assess its operational efficiency, asset utilization, and capital structure to improve its profitability in the future.