MP Materials Corp (MP)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 681,980 | 681,094 | 680,210 | 679,326 | 678,444 | 677,563 | 676,683 | 675,804 | 674,927 | 674,050 | 673,174 | 672,582 | 961 | — | — | — |
| Total assets | US$ in thousands | 2,336,450 | 2,322,220 | 2,289,440 | 2,281,100 | 2,237,790 | 2,189,160 | 2,101,240 | 1,987,210 | 1,889,670 | 1,849,450 | 1,817,960 | 1,782,530 | 1,074,290 | 346,312 | 346,918 | 566 |
| Debt-to-assets ratio | 0.29 | 0.29 | 0.30 | 0.30 | 0.30 | 0.31 | 0.32 | 0.34 | 0.36 | 0.36 | 0.37 | 0.38 | 0.00 | 0.00 | 0.00 | 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 been relatively stable over the past eight quarters, ranging from 0.29 to 0.34. This ratio indicates the proportion of the company's assets financed by debt. A lower debt-to-assets ratio generally suggests lower financial risk and greater financial stability, as it implies the company has a larger proportion of assets financed by equity.
In the case of MP Materials Corporation, the consistent ratio around 0.30 to 0.34 indicates that the company has a relatively conservative capital structure with a significant portion of its assets financed by equity rather than debt. This can be viewed positively by investors and creditors as it signifies a lower risk of default and a greater ability to weather economic downturns or financial challenges. Overall, the stable and moderate debt-to-assets ratio of MP Materials Corporation suggests a prudent financial management strategy.
Peer comparison
Dec 31, 2023