MP Materials (MP Materials) Inventory Turnover : 0.49 (As of Dec. 2023)

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What is MP Materials Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. MP Materials's Cost of Goods Sold for the three months ended in Dec. 2023 was $42.2 Mil. MP Materials's Average Total Inventories for the quarter that ended in Dec. 2023 was $86.2 Mil. MP Materials's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.49.

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 Dec. 2023 was 186.31.

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 Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 2.09.

MP Materials Inventory Turnover Historical Data

The historical data trend for MP Materials's Inventory Turnover 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.

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MP Materials Inventory Turnover Chart

MP Materials Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

2.94

2.56

2.84

2.30

1.94

MP Materials Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial												0.51	0.54	0.54	0.54	0.49

MP Materials Inventory Turnover Calculation

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

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	148.423	/ (	(57.554	+	95.182)	/	2 )
=	148.423	/	76.368
=	1.94

MP Materials's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	42.21	/ (	(77.179	+	95.182)	/	2 )
=	42.21	/	86.1805
=	0.49

MP Materials (NYSE:MP) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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 Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	86.1805	/	42.21	*	365 / 4
	=	186.31

2. 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 Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	86.1805	/	41.205
	=	2.09

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

MP Materials Inventory Turnover 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 Turnover

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