MPCAUTIOUS

MP Current Ratio Analysis

7.18x

Higher than 93% of Basic Materials sector peers

Updated 48h ago·SEC filings & market data

Key Takeaway

The current ratio of 7.18x means MP has $7.18 in current assets (cash, receivables, inventory) for every $1 of short-term liabilities, indicating a very strong ability to cover near-term debts.

Sector Performance

93th percentile

7.18x

Sector Median

2.84x

Sector Avg

5.57x

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Deep Analysis

The current ratio of 7.18x means MP has $7.18 in current assets (cash, receivables, inventory) for every $1 of short-term liabilities, indicating a very strong ability to cover near-term debts.

This is well above the Basic Materials sector median of 2.84x, placing MP in the 93rd percentile among peers — meaning it has more liquidity than 93% of comparable companies. Trend data is not available: the year-over-year change, quarter-over-quarter change, and last-eight-quarter trend are all labeled N/A, so no directional shift can be assessed. The combination of an exceptionally high current ratio with no trend history suggests MP carries very low liquidity risk but may also be holding excess assets that could otherwise be deployed for growth or returns. This level supports the overall CAUTIOUS verdict, because while the metric shows safety from a solvency perspective, such a high ratio can signal inefficiency or a lack of reinvestment opportunity, reinforcing the need for caution.

Frequently Asked Questions

What does the Current Ratio tell investors about MP?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does MP's Current Ratio compare to its sector?

MP's Current Ratio of 7.18x compares to a Basic Materials sector median of 2.84x, placing it in the 93th percentile.

Who are MP's closest peers by Current Ratio?

The closest Basic Materials peers by Current Ratio include: PAAS (2.84x), KGC (2.84x), AG (2.73x), AEM (3.15x), RGLD (3.52x).

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Learn More About Current Ratio

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Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.