MP Materials Corp (MP)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 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 | -10,115 | -24,742 | -16,097 |
| Debt-to-equity ratio | 0.50 | 0.49 | 0.50 | 0.50 | 0.52 | 0.55 | 0.58 | 0.62 | 0.67 | 0.71 | 0.74 | 0.77 | 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 of MP Materials Corporation has been relatively stable over the past eight quarters, ranging from 0.49 to 0.62. This ratio indicates the proportion of the company's debt relative to its equity. A lower ratio typically suggests a lower level of financial risk, as it implies that the company is relying less on debt financing and more on equity financing.
MP Materials Corporation has maintained a moderate level of debt relative to its equity, with the ratio hovering around 0.50 in the most recent quarters. This suggests a balanced capital structure with a reasonable mix of debt and equity funding.
Although there was a slight increase in the debt-to-equity ratio from Q4 2022 to Q1 2022, the ratio remained within a relatively narrow range. This indicates that the company has been managing its debt levels effectively and has not significantly increased its reliance on debt financing.
Overall, MP Materials Corporation's debt-to-equity ratio indicates a prudent financial strategy, balancing the benefits and risks associated with debt financing.
Peer comparison
Dec 31, 2023