MP Materials Corp (MP)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,336,450 | 2,322,220 | 2,289,440 | 2,281,100 | 2,237,790 | 2,189,160 | 2,101,240 | 1,987,210 | 1,889,670 | 1,849,450 | 1,817,960 | 1,782,530 | 1,074,290 | 346,312 | 346,918 | 566 |
| 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 |
| Financial leverage ratio | 1.71 | 1.69 | 1.68 | 1.69 | 1.70 | 1.76 | 1.79 | 1.82 | 1.87 | 1.94 | 2.01 | 2.04 | 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 exhibited a fluctuating trend over the past eight quarters, ranging from 1.68 to 1.82. The ratio indicates that, on average, the company has been using more debt to finance its operations compared to equity over the period.
During the most recent quarter, Q4 2023, the financial leverage ratio stood at 1.71, slightly higher than the previous quarter (Q3 2023) and in line with the Q1-Q3 2023 levels. This suggests a relatively stable leverage position during the latter half of the year.
Comparing to the same quarter of the previous year (Q4 2022), the financial leverage ratio has slightly decreased from 1.70 to 1.71, indicating a possible moderation in the company's reliance on debt financing relative to equity.
The variation in the financial leverage ratio implies that MP Materials Corporation has been managing its capital structure with some flexibility, adjusting its use of debt and equity financing based on internal requirements and external market conditions. Further analysis of the company's overall financial health and performance metrics would be beneficial in gaining a comprehensive understanding of its leverage position.
Peer comparison
Dec 31, 2023