Mativ Holdings Inc. (MATV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -4,200 | -390,600 | -17,700 | 120,500 | 127,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 858,500 | 949,100 | 1,179,300 | 682,200 | 649,600 |
| Return on total capital | -0.49% | -41.15% | -1.50% | 17.66% | 19.67% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-4,200K ÷ ($—K + $858,500K)
= -0.49%
Mativ Holdings Inc.'s return on total capital has shown varying trends over the years. In 2020, the return on total capital was 19.67%, indicating that the company was able to generate a respectable return on the total capital employed in its operations. However, there was a slight decline in this ratio to 17.66% in 2021.
In 2022, there was a significant negative trend with the return on total capital plummeting to -1.50%, indicating that the company may have struggled to generate returns on the capital employed, potentially due to operational inefficiencies or strategic challenges.
This negative trend continued in 2023, with a sharp decline in the return on total capital to -41.15%, suggesting significant difficulties in generating profits relative to the total capital invested.
In 2024, there was a slight improvement in the return on total capital to -0.49%, but the ratio remained negative, indicating continued challenges in effectively utilizing the capital to generate returns.
Overall, the trend in Mativ Holdings Inc.'s return on total capital shows fluctuations and a general decline over the years, suggesting potential issues in the company's operational performance and financial management. Further analysis of the company's operations and financial strategies may be warranted to address these challenges and improve its return on total capital.
Peer comparison
Dec 31, 2024