MP Materials Corp (MP)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 24,307 | 289,004 | 135,037 | -21,825 |
| Total assets | US$ in thousands | 2,336,450 | 2,237,790 | 1,889,670 | 1,074,290 |
| ROA | 1.04% | 12.91% | 7.15% | -2.03% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $24,307K ÷ $2,336,450K
= 1.04%
MP Materials Corporation's return on assets (ROA) has shown varying trends over the past four years. The ROA was notably low at -2.03% in 2020, indicating that the company's assets were not generating significant returns. In the subsequent years, there was a substantial improvement in ROA, with values of 7.15% in 2021 and 12.91% in 2022. These increases suggest enhanced efficiency in asset utilization and profitability.
However, there was a notable decline in ROA to 1.04% in 2023, indicating a potential decrease in the company's ability to generate profits relative to its assets. This decline could be attributed to various factors such as increased operating expenses, lower revenues, or changes in the asset structure.
Overall, MP Materials Corporation's ROA performance has been mixed, with significant improvements in recent years but a decline in the most recent year. Further analysis of the company's financial statements and operational performance would be necessary to understand the factors driving these fluctuations in ROA.
Peer comparison
Dec 31, 2023