MP Materials Corp (MP)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 24,307 | 107,573 | 175,026 | 240,900 | 289,004 | 270,986 | 250,572 | 204,469 | 135,037 | 110,162 | 82,026 | -7,631 | -21,825 |
| Total stockholders’ equity | US$ in thousands | 1,365,780 | 1,376,070 | 1,364,930 | 1,351,800 | 1,312,630 | 1,242,310 | 1,170,740 | 1,090,370 | 1,008,730 | 954,195 | 906,625 | 875,157 | 853,877 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $24,307K ÷ $1,365,780K
= 1.78%
To analyze the return on equity (ROE) of MP Materials Corporation, we observe a declining trend in ROE over the quarters from Q1 2022 to Q4 2023. The ROE decreased from 18.75% in Q1 2022 to 1.78% in Q4 2023. This declining trend indicates that the company's efficiency in generating profits from shareholders' equity has been decreasing over time.
The highest ROE was observed in Q4 2022 at 22.02%, while the lowest ROE was recorded in Q4 2023 at 1.78%. This considerable fluctuation in ROE suggests potential volatility in the company's profitability and efficiency in utilizing shareholder funds.
Overall, the declining trend in ROE raises concerns regarding the company's ability to generate profits relative to shareholders' equity and may require further investigation into the factors influencing this decrease.
Peer comparison
Dec 31, 2023