MP Materials Corp (MP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,054,880 | 1,365,780 | 1,312,630 | 1,008,730 | 853,877 |
| ROE | -6.20% | 1.78% | 22.02% | 13.39% | -2.56% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-65,424K ÷ $1,054,880K
= -6.20%
Based on the data provided for MP Materials Corp's return on equity (ROE) from 2020 to 2024, we can observe fluctuations in the company's performance.
In 2020, the ROE was negative at -2.56%, indicating that the company generated a loss in shareholder value relative to its equity. However, there was a significant improvement in 2021, with the ROE rising to 13.39%, suggesting a more efficient use of equity to generate profits.
The highest ROE was recorded in 2022 at 22.02%, reflecting a strong performance in generating profits with the equity available. Subsequently, in 2023, the ROE declined to 1.78%, indicating a decrease in profitability relative to equity.
The year 2024 saw a significant downturn with a negative ROE of -6.20%, highlighting a loss in shareholder value and operational challenges faced by the company during that period.
Overall, the trend in ROE for MP Materials Corp over the years shows a mix of positive and negative performances, indicating fluctuations in the company's ability to generate profits relative to its equity base. Further analysis of the factors impacting ROE in each period would be necessary to understand the drivers behind these fluctuations and to assess the company's overall financial health and performance.
Peer comparison
Dec 31, 2024