MP Materials Corp (MP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — |
| 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 | — | — | — |
MP Materials Corp has consistently maintained a strong solvency position, as indicated by its solvency ratios over the years.
The Debt-to-Assets ratio has been at 0.00 since June 30, 2020, indicating that the company has no debt relative to its total assets. This signifies a low financial risk and high level of asset coverage to support its operations.
Similarly, the Debt-to-Capital ratio and Debt-to-Equity ratio have also been stable at 0.00 since December 31, 2020. These ratios suggest that the company relies minimally on debt to finance its operations and has a strong capital structure with a significant portion of equity funding.
The Financial Leverage ratio has shown a decreasing trend from 1.26 on December 31, 2020, to 2.21 on December 31, 2024. This indicates that the company's reliance on debt in relation to its equity has increased over the years, although the ratio still remains at a moderate level, indicating a manageable level of financial leverage.
Overall, MP Materials Corp's solvency ratios reflect a healthy and stable financial position, with low debt levels and a strong capital structure, which bodes well for its financial stability and ability to meet its financial obligations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -3.64 | -3.61 | -3.10 | 2.69 | 7.30 | 19.40 | 36.70 | 53.12 | 59.96 | 51.24 | 38.91 | 27.19 | 18.99 | 15.25 | 11.78 | -2.88 | -6.88 | -11.32 | -29.34 | 0.85 |
The interest coverage ratio of MP Materials Corp has demonstrated significant fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at a concerning level of 0.85 on March 31, 2020, indicating that the company's operating income was insufficient to cover its interest expenses.
However, the situation worsened in the subsequent periods, with the interest coverage ratio dropping to negative values, reaching a low of -29.34 on June 30, 2020. This signifies a severe financial condition where the company was unable to meet its interest obligations with its operating earnings.
From June 30, 2021, onwards, there was a notable improvement in the interest coverage ratio, with the company experiencing a positive trend. The ratio increased steadily, surpassing positive double-digit figures on June 30, 2021, and reaching its peak of 59.96 on December 31, 2022.
Subsequently, the ratio experienced fluctuations but generally maintained a healthier level above 10, indicating that the company's operating income was consistently able to cover its interest expenses.
Overall, the interest coverage ratio of MP Materials Corp improved significantly from a precarious position to a more stable and favorable level by the end of the period analyzed, demonstrating enhanced financial health and capacity to manage its interest obligations.