MP Materials (MP Materials) Inventory-to-Revenue : 2.09 (As of Mar. 2024)

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What is MP Materials Inventory-to-Revenue?

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. MP Materials's Average Total Inventories for the quarter that ended in Mar. 2024 was $101.8 Mil. MP Materials's Revenue for the three months ended in Mar. 2024 was $48.7 Mil. MP Materials's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 2.09.

MP Materials's Inventory-to-Revenue for the quarter that ended in Mar. 2024 stayed the same from Dec. 2023 (2.09) to Dec. 2023 (2.09)

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. MP Materials's Days Inventory for the three months ended in Mar. 2024 was 172.17.

Inventory Turnover measures how fast the company turns over its inventory within a year. MP Materials's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.53.

MP Materials Inventory-to-Revenue Historical Data

The historical data trend for MP Materials's Inventory-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

MP Materials Inventory-to-Revenue Chart

MP Materials Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

0.31

0.21

0.11

0.09

0.30

MP Materials Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory-to-Revenue	Get a 7-Day Free Trial													0.62	1.01	1.38	2.09	2.09

Competitive Comparison of MP Materials's Inventory-to-Revenue

For the Other Industrial Metals & Mining subindustry, MP Materials's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

MP Materials's Inventory-to-Revenue Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, MP Materials's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where MP Materials's Inventory-to-Revenue falls into.

MP Materials Inventory-to-Revenue Calculation

MP Materials's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (57.554	+	95.182)	/	2 )	/	253.445
=	76.368					/	253.445
=	0.30

MP Materials's Inventory-to-Revenue for the quarter that ended in Mar. 2024 is calculated as

	Inventory-to-Revenue (Q: Mar. 2024 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )	/	Revenue (Q: Mar. 2024 )
=	( (95.182	+	108.509)	/	2 )	/	48.684
=	101.8455					/	48.684
=	2.09

MP Materials (NYSE:MP) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

MP Materials's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	101.8455	/	53.979	*	365 / 4
	=	172.17

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

MP Materials's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Mar. 2024 )	/	Average Total Inventories (Q: Mar. 2024 )
	=	53.979	/	101.8455
	=	0.53

MP Materials Inventory-to-Revenue Related Terms

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MP Materials (MP Materials) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » MP Materials Corp (NYSE:MP) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

MP:Mexico

Address

1700 S. Pavilion Center Drive, 8th Floor, Las Vegas, NV, USA, 89135

Website

https://www.mpmaterials.com

MP Materials Corp is the largest producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility, the only rare earth mining and processing site ofscale in North America.

Executives

Michael Stuart Rosenthal	officer: Chief Operating Officer	1700 S. PAVILION CENTER DR., SUITE 800, LAS VEGAS NV 89135
James H. Litinsky	director, officer: Chairman and CEO	C/O MP MATERIALS CORP., 1700 S. PAVILION CENTER DRIVE, SUITE 800, LAS VEGAS NV 89135
Jhl Capital Group Llc	other: See Remarks	1500 N. HALSTED ST., SUITE 200, CHICAGO IL 60642
Arnold W Donald	director	C/O CARNIVAL CORPORATION, 3655 N.W. 87TH AVENUE, MIAMI FL 33178
Daniel Allen Gold	director	6720 VIA AUSTI PARKWAY, SUITE 450, LAS VEGAS NV 89119
Qvt Financial Lp	director, 10 percent owner, other: Director by Deputization	888 SEVENTH AVENUE, 43RD FLOOR, NEW YORK NY 10106
Ryan Corbett	officer: Chief Financial Officer	1700 S. PAVILION CENTER DR., SUITE 800, LAS VEGAS NV 89135
Duckworth Connie K	director	EIGHT WINGS ENTERPRISES, 77 STONE AGTE LANE, LAKE FOREST IL 60045
Andrew A. Mcknight	director, officer: Chief Executive Officer	ONE MARKET PLAZA, SPEAR TOWER 42ND FLOOR, SAN FRANCISCO CA 94123
Elliot Dean Hoops	officer: General Counsel and Secretary	1700 S. PAVILION CENTER DR., SUITE 800, LAS VEGAS NV 89135
Jhl Capital Group Holdings Two Llc	other: See Remarks	1500 N. HALSTED ST.,, SUITE 2000, CHICAGO IL 60642
Richard B Myers	director	C/O NORTHROP GRUMMAN CORPORATION, 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Randall J Weisenburger	director	C/O WASSERSTEIN PERELLA GROUP, 31 WEST 52ND ST 26TH FLOOR, NEW YORK NY 10019
Maryanne Lavan	director	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Sheila Bangalore	officer: CSO and General Counsel	6720 VIA AUSTI PARKWAY, SUITE 450, LAS VEGAS NV 89119