Mativ Holdings Inc. (MATV)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -413,900 | -40,200 | 83,300 | 128,800 | 134,000 |
| Total assets | US$ in thousands | 2,642,400 | 3,669,200 | 2,420,300 | 1,584,900 | 1,471,700 |
| Operating ROA | -15.66% | -1.10% | 3.44% | 8.13% | 9.11% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-413,900K ÷ $2,642,400K
= -15.66%
The operating return on assets (ROA) for Mativ Holdings Inc has shown a declining trend over the past five years. The operating ROA decreased from 9.36% in 2019 to 0.37% in 2023. This indicates that the company's operating efficiency in generating profit from its assets has significantly dropped over this period.
The significant decrease in operating ROA could suggest that Mativ Holdings Inc may be facing challenges in effectively utilizing its assets to generate operating income. This could be attributed to various factors such as increased operating expenses, declining revenues, or inefficient asset management.
Further analysis and investigation into the company's operational performance, asset utilization, and overall financial health would be necessary to identify the root causes of the declining operating ROA and to develop strategies for improvement.
Peer comparison
Dec 31, 2023