MP Materials Corp (MP)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,054,880 | 1,365,780 | 1,312,630 | 1,008,730 | 853,877 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,054,880K
= 0.00
The debt-to-equity ratio of MP Materials Corp has consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company is not using any debt to finance its operations and is entirely reliant on equity financing. A debt-to-equity ratio of zero signifies a conservative capital structure where the company is not taking on any financial leverage. This may suggest that the company is managing its financial risks by avoiding debt obligations and potential interest payments. However, it is essential to consider that a very low or zero debt-to-equity ratio may also imply missed opportunities for leveraging debt to potentially enhance returns for shareholders. Overall, MP Materials Corp's consistent zero debt-to-equity ratio indicates a cautious approach to financial leverage and a reliance on equity for its capital needs.
Peer comparison
Dec 31, 2024