Mativ Holdings Inc. (MATV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 949,100 | 1,179,300 | 682,200 | 649,600 | 597,700 |
| ROE | -32.61% | -0.56% | 13.03% | 12.90% | 14.36% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-309,500K ÷ $949,100K
= -32.61%
Mativ Holdings Inc's return on equity (ROE) has exhibited variability over the past five years. In 2023, the company experienced a negative ROE of -32.68%, indicating that its net income was insufficient to generate a positive return for shareholders relative to their equity investment. This represents a significant decline from the previous year's ROE of -0.64%.
Comparing 2022 to 2021, there was a notable decrease in ROE from 12.87% to 12.73%. Despite this decrease, the company still managed to generate a double-digit return for its shareholders, albeit slightly lower than the previous year.
The trend continues in 2020, where Mativ Holdings Inc achieved an ROE of 14.25%, indicating a solid performance in generating profits relative to shareholders' equity. This was, however, slightly lower than the ROE recorded in 2019.
Overall, the company's ROE has fluctuated over the past five years, with both positive and negative returns. The negative ROE in 2023 raises concerns about the company's ability to effectively utilize shareholder equity to generate profits. Further analysis of the company's financial performance and strategic direction would be necessary to understand the factors contributing to the fluctuations in ROE.
Peer comparison
Dec 31, 2023