MP Materials Corp (MP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,365,780 | 1,312,630 | 1,008,730 | 853,877 |
| ROE | 1.78% | 22.02% | 13.39% | -2.56% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $24,307K ÷ $1,365,780K
= 1.78%
The return on equity (ROE) for MP Materials Corporation has fluctuated over the past four years. In 2023, the ROE dropped significantly to 1.78% from 22.02% in 2022, indicating a substantial decrease in the company's profitability in generating returns on shareholders' equity.
The year 2022 was relatively strong with an ROE of 22.02%, suggesting that the company efficiently utilized its shareholder's equity to generate profits. In 2021, the ROE stood at 13.39%, showing a moderate level of profitability compared to the previous year. However, in 2020, MP Materials Corporation had a negative ROE of -2.56%, indicating that the company incurred losses and did not generate positive returns for its shareholders.
Overall, the trend in MP Materials Corporation's ROE shows volatility and inconsistency in its profitability performance over the four-year period, with a significant decline in 2023 raising potential concerns about the company's ability to generate returns on equity. Further analysis of the company's financial performance and operational efficiency would be necessary to understand the underlying factors driving these fluctuations in ROE.
Peer comparison
Dec 31, 2023