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

Company name

Symbol

Return on total capital

Mativ Holdings Inc.

MATV

-10.75%