Mativ Holdings Inc. (MATV)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -48,800 | 107,400 | -327,300 | -330,300 | -310,100 | -465,300 | -33,600 | -17,300 | -10,000 | 40,800 | 76,800 | 66,800 | 88,900 | 50,900 | 63,200 | 82,900 | 83,800 | 88,700 | 91,900 | 90,900 |
| Total assets | US$ in thousands | 2,447,900 | 2,623,100 | 2,607,500 | 2,652,700 | 2,642,400 | 3,117,800 | 3,648,900 | 3,674,800 | 3,675,900 | 3,712,700 | 2,395,300 | 2,441,900 | 2,412,800 | 2,419,800 | 2,423,300 | 1,587,500 | 1,584,900 | 1,590,600 | 1,578,100 | 1,655,200 |
| ROA | -1.99% | 4.09% | -12.55% | -12.45% | -11.74% | -14.92% | -0.92% | -0.47% | -0.27% | 1.10% | 3.21% | 2.74% | 3.68% | 2.10% | 2.61% | 5.22% | 5.29% | 5.58% | 5.82% | 5.49% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $-48,800K ÷ $2,447,900K
= -1.99%
The return on assets (ROA) of Mativ Holdings Inc. has fluctuated over the reporting periods provided. From March 31, 2020, to September 30, 2021, the ROA remained relatively stable, fluctuating between 5.49% and 2.10%. However, from December 31, 2021, onwards, the ROA started to decline significantly, dropping to negative values starting from March 31, 2023.
The negative ROA values from March 31, 2023, to December 31, 2024, indicate that the company's net income was insufficient to cover its total assets, resulting in a loss on investments. The declining trend is concerning as it suggests that the company may be experiencing challenges in generating profits from its assets.
It is crucial for Mativ Holdings Inc. to assess and address the factors contributing to the decline in ROA to improve its financial performance and operational efficiency. Strategies such as optimizing asset utilization, enhancing profitability, and cost management may be necessary to reverse the downward trend in ROA and ensure sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2024