Mativ Holdings Inc. (MATV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -220,500 | 66,900 | 125,600 | 132,700 | 137,100 |
| Long-term debt | US$ in thousands | 1,101,800 | 1,656,400 | 1,264,800 | 590,500 | 540,800 |
| Total stockholders’ equity | US$ in thousands | 949,100 | 1,179,300 | 682,200 | 649,600 | 597,700 |
| Return on total capital | -10.75% | 2.36% | 6.45% | 10.70% | 12.04% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-220,500K ÷ ($1,101,800K + $949,100K)
= -10.75%
Mativ Holdings Inc has shown a declining trend in its return on total capital over the past five years. The return on total capital decreased from 12.43% in 2019 to 0.47% in 2023. This indicates that the company's ability to generate profits from its total capital invested has weakened significantly over the period under review. It is important for the company to investigate the factors contributing to this decline and take necessary actions to improve the return on total capital in order to create value for its shareholders and stakeholders.
Peer comparison
Dec 31, 2023