MP Materials Corp (MP)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | 2,333,560 | 2,300,290 | 2,364,330 | 2,354,040 | 2,393,100 | 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 | 157,187 | 147,604 | — |
| Total stockholders’ equity | US$ in thousands | 1,054,880 | 1,064,540 | 1,109,040 | 1,137,750 | 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 | -10,116 | -24,742 | -18,022 |
| Financial leverage ratio | 2.21 | 2.16 | 2.13 | 2.07 | 1.75 | 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, 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 fluctuating trend over the observed period. The ratio was not available for the earlier periods, indicating potential changes in reporting or calculation methods. From December 31, 2020, to June 30, 2022, the leverage ratio steadily decreased from 1.26 to 1.79, signifying a reduction in the company's reliance on debt financing compared to equity.
However, starting from March 31, 2024, the ratio saw a sharp increase, reaching 2.13 by June 30, 2024, and continuing to rise to 2.21 by December 31, 2024. This upward trend suggests that MP Materials Corp has been increasing its debt levels relative to equity, which can indicate higher financial risk and interest payment obligations.
Overall, monitoring the financial leverage ratio is crucial in assessing the company's capital structure and the extent to which it is using debt to finance its operations and growth initiatives. Investors and stakeholders should closely watch these trends to understand the potential impact on the company's financial health and risk profile.
Peer comparison
Dec 31, 2024