Mativ Holdings Inc. (MATV)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,300 | -413,900 | 81,000 | 129,300 | 139,700 |
| Revenue | US$ in thousands | 1,981,100 | 2,026,000 | 2,167,400 | 1,440,000 | 1,074,400 |
| Operating profit margin | 0.32% | -20.43% | 3.74% | 8.98% | 13.00% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $6,300K ÷ $1,981,100K
= 0.32%
The operating profit margin of Mativ Holdings Inc. has experienced significant fluctuations over the past five years.
In December 2020, the operating profit margin stood at a healthy 13.00%, indicating that the company was able to generate $0.13 of profit for every dollar of sales after deducting operating expenses. However, there was a noticeable decline in profitability by December 2021, with the operating profit margin decreasing to 8.98%. This could suggest increasing operating costs or a decline in revenue relative to expenses.
The trend continued in December 2022, with the operating profit margin dropping further to 3.74%. This substantial decrease indicates that the company's operating expenses were consuming a larger portion of its revenue, potentially impacting overall profitability.
By December 2023, things took a sharp turn for the worse as the operating profit margin plummeted to -20.43%, signifying that the company's operating expenses exceeded its operating profits. This negative margin raises concerns about the company's ability to cover its operating costs with its current level of revenue.
However, there was a slight improvement by December 2024, as the operating profit margin increased to 0.32%. While this uptick is positive, the margin remains quite low, indicating that the company is still facing challenges in effectively managing its operating expenses relative to its sales.
Overall, the declining trend in Mativ Holdings Inc.'s operating profit margin over the analyzed period suggests potential inefficiencies in cost management and operational performance that may require attention to improve the company's profitability in the future.
Peer comparison
Dec 31, 2024