Mativ Holdings Inc. (MATV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 120,200 | 101,100 | 74,700 | 54,700 | 103,000 |
| Short-term investments | US$ in thousands | — | 23,300 | — | 59,000 | — |
| Receivables | US$ in thousands | 207,100 | 286,500 | 248,000 | 154,700 | 155,700 |
| Total current liabilities | US$ in thousands | 281,400 | 466,200 | 231,100 | 166,900 | 157,600 |
| Quick ratio | 1.16 | 0.88 | 1.40 | 1.61 | 1.64 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($120,200K
+ $—K
+ $207,100K)
÷ $281,400K
= 1.16
The quick ratio of Mativ Holdings Inc has fluctuated over the past five years, ranging from 0.94 to 1.68. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities. Therefore, in all the years presented, Mativ Holdings Inc maintained a quick ratio above 1, signaling a relatively healthy liquidity position.
In 2022, the quick ratio dropped to 0.94, indicating a potential liquidity concern as the company may have had difficulties meeting its short-term obligations with its liquid assets alone. However, this improved in 2023 to 1.28, suggesting a better ability to cover its current liabilities using quick assets.
Overall, the quick ratio trend for Mativ Holdings Inc indicates that the company has managed its liquidity well over the years, with the ratio generally staying above 1. This demonstrates the company's ability to meet its short-term obligations without relying heavily on selling its inventory, which is positive for its financial health and operational efficiency.
Peer comparison
Dec 31, 2023