Mativ Holdings Inc. (MATV)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -309,500 | -6,600 | 88,900 | 83,800 | 85,800 |
| Total assets | US$ in thousands | 2,642,400 | 3,669,200 | 2,420,300 | 1,584,900 | 1,471,700 |
| ROA | -11.71% | -0.18% | 3.67% | 5.29% | 5.83% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-309,500K ÷ $2,642,400K
= -11.71%
Mativ Holdings Inc's Return on Assets (ROA) has exhibited a downward trend over the past five years, declining from 5.79% in 2019 to -11.74% in 2023. This downward trajectory indicates a deterioration in the company's ability to generate profits relative to its total assets. The negative ROA in 2023 suggests that the company's net income was insufficient to cover the total assets, leading to a loss.
The decreasing trend in ROA could signal inefficiencies in asset utilization, declining profitability, or potential financial distress within the company. Investors and stakeholders may be concerned about the company's diminishing ability to generate returns from its assets, reflecting a potential decline in financial performance and overall business health. Further analysis of the company's financial statements and operations is warranted to understand the underlying reasons for the declining ROA and to assess the company's future prospects.
Peer comparison
Dec 31, 2023