MP Materials Corp (MP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,333,560 | 2,336,450 | 2,237,790 | 1,889,670 | 1,074,290 |
| Total stockholders’ equity | US$ in thousands | 1,054,880 | 1,365,780 | 1,312,630 | 1,008,730 | 853,877 |
| Financial leverage ratio | 2.21 | 1.71 | 1.70 | 1.87 | 1.26 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,333,560K ÷ $1,054,880K
= 2.21
The financial leverage ratio of MP Materials Corp has shown a noticeable increase over the past five years. Starting at 1.26 on December 31, 2020, the ratio has progressively risen to 2.21 by December 31, 2024. This upward trend indicates that the company is becoming more reliant on debt financing in relation to its equity over the years. The rise in the financial leverage ratio suggests that MP Materials Corp may be taking on more debt to fund its operations or investments, which could potentially lead to increased financial risk and interest expenses. It would be important for stakeholders to closely monitor the company's debt levels and management strategies to ensure sustainable growth and financial health.
Peer comparison
Dec 31, 2024