MP Materials Corp (MP)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -65,424 | -59,341 | -38,101 | 3,349 | 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 | -44,902 | -56,717 | 472 |
| Total stockholders’ equity | US$ in thousands | 1,054,880 | 1,064,540 | 1,109,040 | 1,137,750 | 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 | -10,116 | -24,742 | -18,022 |
| ROE | -6.20% | -5.57% | -3.44% | 0.29% | 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, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-65,424K ÷ $1,054,880K
= -6.20%
The return on equity (ROE) of MP Materials Corp has displayed significant fluctuations over the past few years, indicating varying levels of profitability relative to shareholders' equity.
- The ROE was negative in the initial periods of observation in 2020 and early 2021, implying that the company was generating losses or had very low profitability in relation to its equity during those times.
- Subsequently, there was a notable turnaround as the ROE turned positive in the middle of 2021, indicating improved profitability and efficiency in utilizing shareholders' equity.
- From mid-2021 to the end of 2022, the ROE showed consistent growth, reaching a peak of 22.02% in December 2022. This suggests that the company was generating strong returns for its shareholders during this period.
- However, starting from early 2023, the ROE began to decline gradually, indicating a decrease in profitability relative to equity. By the end of 2024, the ROE had turned negative again, falling to -6.20%.
Overall, the analysis of MP Materials Corp's ROE reveals a volatile performance trend, with periods of both profitability and loss-making episodes. Investors and stakeholders may closely monitor these fluctuations to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024