Mativ Holdings Inc. (MATV)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -309,500 | -464,700 | -32,200 | -15,900 | -6,600 | 44,200 | 78,900 | 68,900 | 88,900 | 50,900 | 63,200 | 82,900 | 83,800 | 88,700 | 91,900 | 90,900 | 85,800 | 72,800 | 86,100 | 91,400 |
| Total stockholders’ equity | US$ in thousands | 949,100 | 673,000 | 1,149,000 | 1,159,300 | 1,179,300 | 1,132,900 | 694,500 | 701,400 | 682,200 | 635,700 | 653,000 | 652,900 | 649,600 | 628,500 | 607,400 | 592,000 | 597,700 | 574,800 | 572,600 | 562,100 |
| ROE | -32.61% | -69.05% | -2.80% | -1.37% | -0.56% | 3.90% | 11.36% | 9.82% | 13.03% | 8.01% | 9.68% | 12.70% | 12.90% | 14.11% | 15.13% | 15.35% | 14.36% | 12.67% | 15.04% | 16.26% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-309,500K ÷ $949,100K
= -32.61%
Mativ Holdings Inc has exhibited a fluctuating trend in return on equity (ROE) over the past eight quarters, as shown in the provided data. The ROE stood at -32.68% in Q4 2023, indicating a significant decline from the previous quarter's -69.18%. This suggests a considerable drop in profitability relative to shareholder investment. The negative ROE values in recent quarters may be a cause for concern, as they indicate that the company is generating net losses or has lower net income relative to the equity invested by shareholders.
Prior to the recent negative ROE values, Mativ Holdings Inc experienced some positive ROE figures, such as 3.79% in Q3 2022 and 11.17% in Q2 2022. These positive values indicate that the company was generating profit and efficiently utilizing shareholder equity during those periods.
The company's performance in Q4 2022, with an ROE of -0.64%, showed a slight decrease from the preceding quarters of positive ROE. This decline may have been an early indicator of the subsequent negative ROE trend in the following quarters.
Overall, the recent negative ROE values suggest that Mativ Holdings Inc may be facing challenges in generating profit compared to the equity invested by shareholders. It is essential for the company to closely analyze its financial performance, profitability drivers, and cost structures to improve its ROE in the future quarters and ensure sustainable growth and value creation for its shareholders.
Peer comparison
Dec 31, 2023