Mativ Holdings Inc. (MATV)

Short-term

Turnover ratios

The activity ratios of Mativ Holdings Inc. provide insights into how efficiently the company manages its resources related to inventory, receivables, payables, and working capital.

1. Inventory Turnover: Mativ Holdings Inc. experienced a slight fluctuation in its inventory turnover ratio over the years, ranging from 3.23 to 4.73. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently, which is generally beneficial as it reduces holding costs and ties up less capital in inventory.

2. Receivables Turnover: The data shows that no information is available for the receivables turnover ratio for any year provided. Receivables turnover ratio is an important metric to analyze how efficiently a company collects payments from its customers. The absence of data for this ratio suggests that further assessment of the company's accounts receivable management may be warranted.

3. Payables Turnover: Similarly, no information is available for the payables turnover ratio for any year. Payables turnover ratio helps in understanding how quickly a company pays its suppliers. The lack of data for this ratio prevents a comprehensive assessment of the company's payables management efficiency.

4. Working Capital Turnover: The working capital turnover ratio ranged from 3.96 to 5.16 over the years provided. A higher working capital turnover ratio indicates that the company generates more revenue with less investment in working capital, which reflects efficient utilization of resources to drive sales.

Overall, while the inventory turnover and working capital turnover ratios provide some insights into Mativ Holdings Inc.'s operational efficiency, the lack of information for receivables and payables turnovers limits the complete analysis of its activity ratios. Further information on receivables and payables turnovers would be necessary to assess the company's overall efficiency in managing its assets and liabilities.

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Average number of days

The activity ratios of Mativ Holdings Inc. provide insights into how efficiently the company manages its operations and resources.

1. Days of Inventory on Hand (DOH):
- The company's DOH remained relatively stable over the years, ranging from 77.25 to 112.87 days.
- A lower DOH indicates faster inventory turnover, which can be beneficial in reducing carrying costs and minimizing the risk of inventory obsolescence.
- Mativ Holdings Inc. should track inventory levels closely to ensure they are optimizing inventory management efficiently.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for Mativ Holdings Inc., which makes it challenging to assess the average number of days it takes for the company to collect its accounts receivable.
- Monitoring DSO is crucial to evaluate the effectiveness of the company's credit and collection policies. Lower DSO signifies a quicker collection of cash, enhancing liquidity.

3. Number of Days of Payables:
- Similar to DSO, there is a lack of data for the number of days of payables for Mativ Holdings Inc.
- Analyzing payables turnover is essential to understand how promptly the company pays its suppliers. A longer payable period may signal good cash flow management.

In conclusion, whereas the DOH data reveals a consistent inventory management trend, the absence of DSO and payables data limits a comprehensive assessment of the company's efficiency in accounts receivable collection and payment to suppliers. Monitoring these ratios over time can provide valuable insights into Mativ Holdings Inc.'s operational effectiveness and financial health.

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Long-term

Mativ Holdings Inc.'s long-term activity ratios indicate how efficiently the company is utilizing its assets. The Fixed Asset Turnover ratio has shown a declining trend over the years, from 3.17 in 2020 to 2.48 in 2022. This suggests that the company is generating fewer sales from its fixed assets, which may indicate underutilization or aging of these assets.

On the other hand, the Total Asset Turnover ratio has fluctuated over the same period, from 0.68 in 2020 to 0.81 in 2024. This indicates that the company is generating more revenue relative to its total assets, showcasing an improvement in overall asset utilization efficiency.

Overall, although the Fixed Asset Turnover ratio has declined, the Total Asset Turnover ratio has shown improvement, implying that Mativ Holdings Inc. may be effectively managing its total assets to generate sales. However, further investigation into the reasons behind the decline in fixed asset turnover may be necessary to ensure optimal utilization of these assets.