Mativ Holdings Inc. (MATV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 858,500 | 882,300 | 898,000 | 906,900 | 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 |
| ROE | -5.68% | 12.17% | -36.45% | -36.42% | -32.67% | -69.14% | -2.92% | -1.49% | -0.85% | 3.60% | 11.06% | 9.52% | 13.03% | 8.01% | 9.68% | 12.70% | 12.90% | 14.11% | 15.13% | 15.35% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-48,800K ÷ $858,500K
= -5.68%
The return on equity (ROE) of Mativ Holdings Inc. has shown fluctuations over the past few years. From March 31, 2020, to June 30, 2021, the ROE remained relatively stable, ranging from 15.35% to 9.68%. However, from September 30, 2021, onwards, there was a noticeable decline in the ROE, dropping to 3.60% by the end of September 2022, and turning negative in the following periods. The negative ROE continued until June 30, 2024, with values as low as -69.14%.
The negative ROE signals that the company's net income is insufficient to cover shareholders' equity, indicating potential financial distress or operational inefficiencies. The sudden decline in ROE from a positive range to negative values suggests a possible deterioration in the company's profitability and efficiency in generating returns for shareholders. The rebound in the ROE to 12.17% by September 30, 2024, shows some improvement but remains below historical levels.
Overall, the downward trend in ROE raises concerns about Mativ Holdings' ability to generate profits and create value for its shareholders. Further analysis of the company's financial performance and operations is warranted to understand the underlying factors contributing to the declining ROE and to devise appropriate strategies for improvement.
Peer comparison
Dec 31, 2024