MP Materials Corp (MP)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,365,780 | 1,312,630 | 1,008,730 | 853,877 |
| Debt-to-equity ratio | 0.50 | 0.52 | 0.67 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $681,980K ÷ $1,365,780K
= 0.50
The debt-to-equity ratio for MP Materials Corporation has fluctuated over the past four years. In 2020, the ratio was notably low at 0.08, indicating that the company had a relatively lower level of debt compared to its equity. However, there was a significant increase in the ratio to 0.69 by the end of 2021, suggesting a higher level of debt relative to equity in that year.
In the subsequent years, the ratio decreased to 0.52 in 2022 and further to 0.50 in 2023. These lower ratios indicate a more balanced mix of debt and equity in the company's capital structure, with a decreasing trend towards a more conservative level of debt usage.
Overall, the varying debt-to-equity ratios suggest that MP Materials Corporation has made adjustments to its capital structure over the years, potentially managing its debt levels while also considering its equity position. It would be important to further examine the reasons behind these changes and assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023