Mativ Holdings Inc. (MATV)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,959,100 | 2,091,700 | 1,421,900 | 1,043,000 | 985,300 |
| Property, plant and equipment | US$ in thousands | 672,500 | 691,500 | 461,700 | 339,000 | 330,300 |
| Fixed asset turnover | 2.91 | 3.02 | 3.08 | 3.08 | 2.98 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,959,100K ÷ $672,500K
= 2.91
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate sales revenue. The trend analysis of Mativ Holdings Inc's fixed asset turnover over the past five years shows variability in performance.
In 2023, the fixed asset turnover ratio improved to 3.01 compared to the previous year, indicating that the company generated $3.01 in sales for every $1 invested in fixed assets. This suggests that Mativ Holdings Inc managed to efficiently utilize its fixed assets to drive sales revenue during the year.
Conversely, in 2022, the fixed asset turnover ratio decreased to 2.48, signaling a decrease in efficiency in utilizing fixed assets to generate sales revenue. However, it rebounded in 2021 to 3.10, showing a strong performance in efficiently generating sales from fixed assets.
Looking further back, in 2020 and 2019, the fixed asset turnover ratios were 3.17 and 3.10, respectively, indicating consistent performance in utilizing fixed assets efficiently to drive sales revenue during both years.
Overall, Mativ Holdings Inc's fixed asset turnover has shown mixed results over the past five years, with fluctuations in performance. It is crucial for the company to maintain a consistent focus on efficiently utilizing its fixed assets to drive sales revenue and sustain long-term profitability.
Peer comparison
Dec 31, 2023