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

Company name
Symbol
ROE
Mativ Holdings Inc.
MATV
-32.61%
International Paper
IP
3.45%
Sylvamo Corp
SLVM
28.08%