Mativ Holdings Inc. (MATV)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.40 | 2.37 | 2.46 | 2.54 | 2.53 | 2.27 | 2.26 | 2.15 | 2.09 | 2.42 | 2.69 | 2.62 | 2.57 | 2.47 | 2.37 | 2.71 | 2.38 | 2.65 | 2.96 | 3.33 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $658,100K ÷ $274,500K
= 2.40
The current ratio of Mativ Holdings Inc. has fluctuated over the past few years, ranging from a high of 3.33 on March 31, 2020, to a low of 2.09 on December 31, 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
Generally, a current ratio above 2 is considered healthy as it indicates that the company has sufficient current assets to cover its short-term obligations. Mativ Holdings Inc. has consistently maintained a current ratio above 2 in the period under review, indicating that the company has a strong liquidity position.
It is worth noting that a declining trend in the current ratio, as seen in the data provided, may suggest that the company's current assets are decreasing relative to its current liabilities. This could be a cause for concern as it may indicate potential difficulties in meeting short-term obligations in the future.
Overall, Mativ Holdings Inc. has demonstrated a relatively stable current ratio above 2, indicating a strong ability to meet its short-term financial obligations. However, it is essential for the company to closely monitor this ratio to ensure that its liquidity position remains healthy in the long term.
Peer comparison
Dec 31, 2024