MP Materials Corp (MP)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,336,450 | 2,237,790 | 1,889,670 | 1,074,290 |
| Total stockholders’ equity | US$ in thousands | 1,365,780 | 1,312,630 | 1,008,730 | 853,877 |
| Financial leverage ratio | 1.71 | 1.70 | 1.87 | 1.26 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,336,450K ÷ $1,365,780K
= 1.71
The financial leverage ratio of MP Materials Corporation has shown varying trends over the past four years. The ratio was 1.26 in 2020, indicating a relatively lower level of leverage. However, the ratio increased to 1.87 in 2021, suggesting a significant rise in financial leverage. Subsequently, the ratio decreased slightly to 1.70 in 2022 before increasing again to 1.71 in 2023.
Overall, the fluctuations in the financial leverage ratio of MP Materials Corporation suggest changes in the company's capital structure and its use of debt to finance its operations. A higher financial leverage ratio typically indicates a higher proportion of debt in the capital structure, which may bring both opportunities and risks. It is important for stakeholders to closely monitor such changes in leverage to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023