Mativ Holdings Inc. (MATV)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,447,900 | 2,642,400 | 3,675,900 | 2,412,800 | 1,584,900 |
| Operating ROA | 0.26% | -15.66% | 2.20% | 5.36% | 8.81% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $6,300K ÷ $2,447,900K
= 0.26%
Mativ Holdings Inc.'s operating return on assets (operating ROA) has witnessed a declining trend over the years. As of December 31, 2020, the company's operating ROA stood at 8.81%, reflecting a healthy level of profitability generated from its operational assets. However, this metric experienced a notable decrease to 5.36% by the end of 2021, indicating a weakening efficiency in utilizing its assets to generate operating profits.
Subsequently, Mativ Holdings Inc.'s operating ROA further declined to 2.20% by December 31, 2022, suggesting a continued decline in operational efficiency. The trend took a drastic turn in 2023, with the operating ROA plummeting to -15.66%. This negative figure could indicate significant operational challenges or impairments impacting the company's ability to generate profits from its assets.
Although there was a slight improvement in 2024, with the operating ROA increasing to 0.26%, the overall trend highlights a concerning pattern of diminishing profitability relative to the company's asset base. It is advisable for stakeholders to closely monitor Mativ Holdings Inc.'s operational performance and asset utilization efficiency to address the challenges identified and work towards restoring positive operating returns on assets.
Peer comparison
Dec 31, 2024