Mativ Holdings Inc. (MATV)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -78,900 | -480,900 | -24,400 | 73,100 | 97,300 |
| Revenue | US$ in thousands | 1,981,100 | 2,026,000 | 2,167,400 | 1,440,000 | 1,074,400 |
| Pretax margin | -3.98% | -23.74% | -1.13% | 5.08% | 9.06% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-78,900K ÷ $1,981,100K
= -3.98%
The pretax margin of Mativ Holdings Inc. has shown a downward trend over the years, indicating a declining profitability before taxes. In December 2020, the pretax margin stood at 9.06%, reflecting a healthy level of profitability. However, by December 2024, the pretax margin had decreased to -3.98%, signaling a loss-making situation before tax expenses.
The significant drop in pretax margin from 2020 to 2024 suggests potential challenges in managing costs and generating sufficient revenue to cover operating expenses before taxes. It is important for the company to closely monitor its cost structure, revenue streams, and overall operational efficiency to improve profitability and enhance financial performance in the future.
Overall, the declining trend in pretax margin raises concerns about Mativ Holdings Inc.'s ability to maintain sustainable profitability levels and highlights the need for strategic adjustments to address the underlying issues affecting the company's financial performance.
Peer comparison
Dec 31, 2024