Mativ Holdings Inc. (MATV)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 364,100 | 358,500 | 437,600 | 330,300 | 308,300 |
| Revenue | US$ in thousands | 1,981,100 | 2,026,000 | 2,167,400 | 1,440,000 | 1,074,400 |
| Gross profit margin | 18.38% | 17.69% | 20.19% | 22.94% | 28.70% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $364,100K ÷ $1,981,100K
= 18.38%
Based on the data provided, Mativ Holdings Inc.'s gross profit margin has shown a declining trend over the past five years. In December 31, 2020, the gross profit margin stood at 28.70%, reflecting a healthy level of profitability. However, there has been a consistent decrease in the gross profit margin since then, with figures of 22.94% in December 31, 2021, 20.19% in December 31, 2022, 17.69% in December 31, 2023, and 18.38% in December 31, 2024.
This downward trend in the gross profit margin could indicate challenges in managing production costs, pricing strategies, or competition within the industry. It may also suggest that the company is facing difficulties in maintaining or growing its sales revenues while controlling the cost of goods sold.
As an analyst, it would be important to further investigate the root causes of this declining trend in the gross profit margin to provide recommendations on potential strategic changes or operational improvements that Mativ Holdings Inc. could undertake to reverse this negative trend and enhance its profitability in the future.
Peer comparison
Dec 31, 2024