Mativ Holdings Inc. (MATV)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,981,100 | 1,974,800 | 1,974,500 | 2,119,000 | 2,297,800 | 2,505,600 | 2,681,500 | 2,439,600 | 2,167,400 | 1,897,700 | 1,607,200 | 1,558,600 | 1,440,000 | 1,329,000 | 1,224,700 | 1,101,100 | 1,074,400 | 1,033,500 | 1,010,600 | 1,026,300 |
| Total current assets | US$ in thousands | 658,100 | 777,300 | 751,700 | 759,300 | 712,500 | 914,400 | 963,200 | 1,005,200 | 974,700 | 1,064,000 | 653,700 | 638,000 | 594,600 | 609,800 | 578,700 | 428,100 | 396,400 | 422,400 | 404,400 | 473,700 |
| Total current liabilities | US$ in thousands | 274,500 | 328,000 | 305,100 | 299,500 | 281,400 | 403,500 | 426,200 | 468,500 | 466,100 | 439,300 | 242,800 | 243,400 | 231,100 | 246,600 | 244,400 | 157,700 | 166,900 | 159,300 | 136,700 | 142,400 |
| Working capital turnover | 5.16 | 4.40 | 4.42 | 4.61 | 5.33 | 4.90 | 4.99 | 4.55 | 4.26 | 3.04 | 3.91 | 3.95 | 3.96 | 3.66 | 3.66 | 4.07 | 4.68 | 3.93 | 3.78 | 3.10 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,981,100K ÷ ($658,100K – $274,500K)
= 5.16
Mativ Holdings Inc.'s working capital turnover has shown fluctuations over the past few years. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
From March 31, 2020, to December 31, 2022, the working capital turnover ratio gradually increased from 3.10 to 4.26. This indicates that the company was able to generate $4.26 in revenue for every $1 of working capital invested by the end of 2022, showing improved efficiency in managing working capital.
However, the ratio dipped to 3.04 by September 30, 2022, before rebounding to 5.33 by December 31, 2023. This significant increase could be a result of either increased sales or more effective management of working capital during that period.
Subsequently, the ratio decreased slightly to 4.61 by March 31, 2024, and further to 4.42 by June 30, 2024. This could signal a potential slowdown in revenue generation compared to the previous periods.
Overall, the fluctuations in Mativ Holdings Inc.'s working capital turnover ratio suggest varying levels of efficiency in utilizing working capital to generate sales. It would be crucial for the company to closely monitor this ratio to ensure optimal management of working capital for sustainable growth and profitability.
Peer comparison
Dec 31, 2024