MP Materials Corp (MP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -65,424 | 24,307 | 289,004 | 135,037 | -21,825 |
| Total assets | US$ in thousands | 2,333,560 | 2,336,450 | 2,237,790 | 1,889,670 | 1,074,290 |
| ROA | -2.80% | 1.04% | 12.91% | 7.15% | -2.03% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-65,424K ÷ $2,333,560K
= -2.80%
The return on assets (ROA) for MP Materials Corp has exhibited fluctuations over the years, based on the provided data. In December 31, 2020, the ROA was at -2.03%, indicating that the company's net income generated from its assets was negative. However, there was a significant improvement in the ROA by December 31, 2021, reaching 7.15%, reflecting a turnaround in profitability and efficiency in asset utilization.
Subsequently, in December 31, 2022, the ROA further increased to 12.91%, demonstrating a substantial boost in the company's ability to generate earnings relative to its total assets. However, there was a decline in the ROA by December 31, 2023, dropping to 1.04%, suggesting a decrease in profitability efficiency.
The trend continued with a more pronounced decrease in ROA by December 31, 2024, to -2.80%, indicating that the company's profitability relative to its asset base turned negative once again. Overall, the ROA of MP Materials Corp has shown variability, reflecting fluctuations in the company's performance in generating profits from its assets over the years.
Peer comparison
Dec 31, 2024