Mativ Holdings Inc. (MATV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.38% | 17.69% | 20.19% | 22.94% | 28.70% |
| Operating profit margin | 0.32% | -20.43% | 3.74% | 8.98% | 13.00% |
| Pretax margin | -3.98% | -23.74% | -1.13% | 5.08% | 9.06% |
| Net profit margin | -2.46% | -15.31% | -0.54% | 6.17% | 7.80% |
The profitability ratios of Mativ Holdings Inc. have shown a declining trend over the years.
1. Gross Profit Margin: The gross profit margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, has decreased from 28.70% in 2020 to 18.38% in 2024. This decline suggests that the company's ability to generate profits from its core business operations has weakened.
2. Operating Profit Margin: The operating profit margin, reflecting the percentage of revenue left after deducting operating expenses, has also deteriorated significantly. It dropped from 13.00% in 2020 to 0.32% in 2024, indicating that the company's operational efficiency has decreased, leading to lower profitability.
3. Pretax Margin: The pretax margin, showing the proportion of revenue that translates into pre-tax profits, has turned negative in 2022 and onwards. This indicates that the company's performance in terms of generating profits before tax has worsened, reaching -3.98% in 2024.
4. Net Profit Margin: The net profit margin, which represents the percentage of revenue that results in net income, has also experienced a negative trend. It declined from 7.80% in 2020 to -2.46% in 2024, indicating that the company is facing challenges in generating bottom-line profits.
Overall, the declining trend in profitability margins for Mativ Holdings Inc. suggests that the company is facing challenges in maintaining profitability from its core operations. This could be attributed to various factors such as increasing costs, declining sales, or inefficiencies in operating the business. Further analysis and strategic actions may be required to improve profitability and enhance the company's financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.26% | -15.66% | 2.20% | 5.36% | 8.81% |
| Return on assets (ROA) | -1.99% | -11.74% | -0.32% | 3.68% | 5.29% |
| Return on total capital | -0.49% | -41.15% | -1.50% | 17.66% | 19.67% |
| Return on equity (ROE) | -5.67% | -32.68% | -1.00% | 13.03% | 12.90% |
Mativ Holdings Inc.'s profitability ratios have shown a declining trend over the years. The Operating Return on Assets (Operating ROA) decreased from 8.81% in 2020 to 0.26% in 2024, indicating a decreasing ability to generate operating profit from its assets.
Similarly, the Return on Assets (ROA) decreased from 5.29% in 2020 to -1.99% in 2024, showing a diminishing capacity to generate profit relative to its total assets. This trend suggests inefficiency in asset utilization or declining profitability.
Return on Total Capital also experienced a significant decline, decreasing from 19.67% in 2020 to -0.49% in 2024. This indicates a decreasing ability to generate returns from the total capital employed, which can be a concern for investors and creditors.
Lastly, the Return on Equity (ROE) decreased from 12.90% in 2020 to -5.67% in 2024, reflecting a decreasing ability to generate returns for shareholders. This downward trend highlights potential issues with profitability and shareholder value creation.
Overall, the declining profitability ratios of Mativ Holdings Inc. raise concerns about its operational efficiency, asset utilization, and overall financial performance. Investors and stakeholders may need to closely monitor the company's financial health and performance to understand and address the underlying factors driving these negative trends.