Mativ Holdings Inc. (MATV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.16% | 14.63% | 23.23% | 29.56% | 29.43% |
| Operating profit margin | -21.13% | -1.92% | 5.86% | 12.35% | 13.60% |
| Pretax margin | -14.43% | -0.92% | 5.59% | 9.80% | 10.25% |
| Net profit margin | -15.80% | -0.32% | 6.25% | 8.03% | 8.71% |
Mativ Holdings Inc's profitability ratios exhibit a declining trend over the past five years. The gross profit margin has decreased from 28.35% in 2019 to 17.56% in 2023, indicating a decline in the company's ability to generate profits from sales after deducting the cost of goods sold. This could be a result of rising production costs or pricing pressures in the market.
The operating profit margin has also decreased significantly, from 13.46% in 2019 to 0.48% in 2023, reflecting a decline in the company's ability to generate profits from its core business operations. This could signal inefficiencies in cost management or a decrease in revenue relative to operating expenses.
Furthermore, the pretax margin shows a negative trend, with a notable decline from 9.87% in 2019 to -23.74% in 2023. This suggests that the company's profitability before tax has deteriorated significantly over the years, possibly due to increasing operating expenses or impairment charges impacting the bottom line.
Lastly, the net profit margin has also shown a declining trend, reaching -15.31% in 2023 from 8.33% in 2019. This indicates that the company's bottom-line profitability has been negatively impacted, possibly due to higher interest expenses, tax burdens, or non-operating losses.
In summary, Mativ Holdings Inc's profitability ratios suggest a deteriorating financial performance over the years, which may necessitate a closer examination of cost structures, revenue streams, and overall business strategies to drive profitability improvements in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -15.66% | -1.10% | 3.44% | 8.13% | 9.11% |
| Return on assets (ROA) | -11.71% | -0.18% | 3.67% | 5.29% | 5.83% |
| Return on total capital | -10.75% | 2.36% | 6.45% | 10.70% | 12.04% |
| Return on equity (ROE) | -32.61% | -0.56% | 13.03% | 12.90% | 14.36% |
Mativ Holdings Inc's profitability ratios show fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has been decreasing steadily, from 9.36% in 2019 to 0.37% in 2023. This indicates that the company's operating efficiency in generating profits from its assets has declined significantly.
2. Return on assets (ROA) has also shown a downward trend, moving from 5.79% in 2019 to -11.74% in 2023. This negative ROA figure in 2023 suggests that the company is operating at a loss and may not be effectively utilizing its assets to generate profits.
3. Return on total capital has followed a similar pattern, dropping from 12.43% in 2019 to 0.47% in 2023. This indicates a decrease in the company's ability to generate profits from its total invested capital.
4. Return on equity (ROE) has experienced volatility, with negative returns in 2023 (-32.68%) and 2020 (-0.64%). Although there was a peak in 2021 with a ROE of 12.87%, this figure declined to 12.73% in 2022. This fluctuation may reflect inconsistent profitability levels and potentially unstable financial performance.
Overall, Mativ Holdings Inc's profitability ratios point to weakening profitability and financial performance over the analyzed period, raising concerns about the company's ability to generate returns for its investors and efficiently utilize its assets and capital.