MP Materials Corp (MP)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 681,980 | 678,444 | 674,927 | 961 |
| Total assets | US$ in thousands | 2,336,450 | 2,237,790 | 1,889,670 | 1,074,290 |
| Debt-to-assets ratio | 0.29 | 0.30 | 0.36 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $681,980K ÷ $2,336,450K
= 0.29
The debt-to-assets ratio of MP Materials Corporation has shown a fluctuating trend over the past four years. In 2020, the ratio was at its lowest at 0.07, indicating that only 7% of the company's assets were funded by debt. However, this ratio increased to 0.37 in 2021, suggesting that 37% of the company's assets were financed by debt that year.
During the next two years, the debt-to-assets ratio decreased to 0.30 in 2022 and then to 0.29 in 2023. This downward trend indicates that MP Materials Corporation has been reducing its reliance on debt financing to fund its assets. Overall, the company has maintained a relatively conservative level of debt relative to its total assets, which may indicate a prudent approach to financial management.
Peer comparison
Dec 31, 2023