Mativ Holdings Inc. (MATV)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.56 | 7.89 | 5.09 | 4.44 | 5.17 | 3.10 | 4.26 | 4.18 | 3.83 | 3.81 | 3.54 | 4.21 | 3.91 | 4.05 | 3.94 | 4.28 | 4.23 | 4.56 | 4.23 | 4.00 |
| Receivables turnover | 10.65 | 12.10 | 8.60 | 7.16 | 7.22 | 3.91 | 5.22 | 5.37 | 5.68 | 5.00 | 4.84 | 6.14 | 6.80 | 5.74 | 6.20 | 5.66 | 6.38 | 6.00 | 5.61 | 5.96 |
| Payables turnover | 16.63 | 19.26 | 12.39 | 9.53 | 11.87 | 6.31 | 9.54 | 9.28 | 8.58 | 8.53 | 7.71 | 10.96 | 11.60 | 10.45 | 12.76 | 10.08 | 10.27 | 10.62 | 10.70 | 8.57 |
| Working capital turnover | 5.11 | 4.68 | 4.77 | 4.34 | 4.07 | 2.94 | 3.79 | 3.84 | 3.88 | 3.57 | 3.59 | 4.00 | 4.58 | 3.84 | 3.69 | 3.01 | 3.68 | 3.66 | 3.38 | 3.54 |
Mativ Holdings Inc's activity ratios provide insight into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover: This ratio indicates how many times the company's inventory is sold and replaced during the period. Mativ's inventory turnover has been consistently increasing over the quarters, reaching 4.73 in Q4 2023. This suggests that the company is selling its inventory more quickly, which may indicate effective inventory management or increasing sales volume.
2. Receivables Turnover: This ratio measures how efficiently the company is collecting on its credit sales. Mativ's receivables turnover has shown a generally increasing trend, reaching 9.78 in Q4 2023. A higher turnover ratio indicates that the company is collecting on its receivables more quickly, potentially improving cash flow and reducing the risk of bad debts.
3. Payables Turnover: This ratio reflects how efficiently the company is paying its suppliers and creditors. Mativ's payables turnover has also displayed an increasing trend, reaching 11.99 in Q4 2023. A higher turnover ratio suggests that the company is taking longer to pay its suppliers, which can be beneficial for managing cash flow and working capital.
4. Working Capital Turnover: This ratio assesses how effectively the company is utilizing its working capital to generate sales. Mativ's working capital turnover has been relatively stable, with a slight increase over the quarters, reaching 4.70 in Q4 2023. A higher turnover ratio indicates that the company is generating more sales per dollar of working capital, which can be a sign of efficient operations.
Overall, the increasing trends in inventory turnover, receivables turnover, and payables turnover, along with the stable working capital turnover, suggest that Mativ Holdings Inc has been improving the efficiency of its operations and managing its resources effectively.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.60 | 46.27 | 71.69 | 82.22 | 70.59 | 117.67 | 85.74 | 87.25 | 95.20 | 95.86 | 103.12 | 86.69 | 93.46 | 90.19 | 92.69 | 85.33 | 86.35 | 80.10 | 86.34 | 91.29 |
| Days of sales outstanding (DSO) | days | 34.29 | 30.17 | 42.44 | 50.98 | 50.54 | 93.24 | 69.91 | 67.96 | 64.26 | 72.93 | 75.41 | 59.42 | 53.69 | 63.60 | 58.87 | 64.50 | 57.22 | 60.78 | 65.08 | 61.26 |
| Number of days of payables | days | 21.95 | 18.95 | 29.47 | 38.29 | 30.75 | 57.86 | 38.25 | 39.33 | 42.56 | 42.81 | 47.34 | 33.31 | 31.47 | 34.92 | 28.60 | 36.22 | 35.53 | 34.37 | 34.10 | 42.60 |
Days of inventory on hand (DOH) measures how many days it takes for a company to sell its existing inventory. A lower DOH indicates that the company is efficiently managing its inventory levels. In the case of Mativ Holdings Inc, the trend in DOH has been fluctuating over the past eight quarters, with significant variability. The DOH ranged from a high of 117.63 days in Q3 2022 to a low of 64.63 days in Q3 2023. The decreasing trend in recent quarters suggests that the company has been improving its inventory management efficiency.
Days of sales outstanding (DSO) measures the average number of days it takes for a company to collect outstanding accounts receivable. A lower DSO is favorable as it indicates faster collection of receivables. Mativ Holdings Inc's DSO has shown variability over the quarters, ranging from a low of 28.80 days in Q3 2023 to a high of 90.36 days in Q3 2022. The decreasing trend in DSO in recent quarters indicates that the company has been improving its accounts receivable collection process.
Number of days of payables measures how long a company takes to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to pay its bills, potentially improving its cash flow position. Mativ Holdings Inc's days of payables have fluctuated over the quarters, with a range from 26.47 days in Q3 2023 to 57.84 days in Q3 2022. The decreasing trend in recent quarters suggests the company may be paying its suppliers more promptly.
Overall, the activity ratios of Mativ Holdings Inc indicate that the company has been making improvements in managing its inventory, accounts receivable, and accounts payable.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 3.28 | 3.60 | 2.93 | 2.67 | 2.99 | 2.18 | 3.65 | 3.37 | 3.05 | 2.78 | 2.52 | 3.34 | 3.10 | 3.08 | 3.04 | 3.07 | 3.01 | 3.14 | 3.04 | 3.09 |
| Total asset turnover | 0.83 | 0.77 | 0.70 | 0.63 | 0.56 | 0.50 | 0.65 | 0.62 | 0.58 | 0.54 | 0.50 | 0.68 | 0.66 | 0.64 | 0.63 | 0.60 | 0.67 | 0.69 | 0.68 | 0.69 |
The fixed asset turnover ratio of Mativ Holdings Inc has shown fluctuation over the last eight quarters, ranging from 2.25 to 3.77. This ratio indicates the company's effectiveness in generating sales from its investment in fixed assets. A higher ratio suggests that the company is efficiently utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has also varied, with values ranging from 0.51 to 0.80. This ratio measures the company's ability to generate sales from its total assets. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets.
Overall, the trend in both ratios suggests that Mativ Holdings Inc has been improving its efficiency in utilizing both fixed assets and total assets to generate sales. The increasing trend in fixed asset turnover indicates that the company has been able to generate more sales from its investment in fixed assets over the quarters. Similarly, the increasing trend in total asset turnover ratio shows that the company has been improving its ability to generate sales overall relative to its total assets. This improvement may be indicative of better management of resources and increased operational efficiency within the company.