Mativ Holdings Inc. (MATV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 94,300 | 120,200 | 124,400 | 74,700 | 54,700 |
| Short-term investments | US$ in thousands | — | — | — | — | 59,000 |
| Total current liabilities | US$ in thousands | 274,500 | 281,400 | 466,100 | 231,100 | 166,900 |
| Cash ratio | 0.34 | 0.43 | 0.27 | 0.32 | 0.68 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($94,300K
+ $—K)
÷ $274,500K
= 0.34
The cash ratio of Mativ Holdings Inc. has been fluctuating over the years. It stood at 0.68 as of December 31, 2020, indicating that the company had $0.68 in cash and cash equivalents for every $1 of current liabilities. However, this ratio decreased to 0.32 by the end of 2021, suggesting a significant reduction in the company's ability to cover its short-term obligations with its available cash resources.
In the following years, the cash ratio continued to decline, reaching 0.27 as of December 31, 2022, and then increasing slightly to 0.43 by the end of 2023. This improvement in 2023 indicates a slightly better ability to meet short-term liabilities with cash on hand.
By December 31, 2024, the cash ratio of Mativ Holdings Inc. decreased again to 0.34. While this ratio demonstrates that the company has some liquidity to cover its short-term obligations, the downward trend from 2020 to 2024 suggests a potential liquidity challenge that may require attention from management to ensure the company's financial health and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2024