Mativ Holdings Inc. (MATV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -196,300 | -317,500 | 74,700 | 81,200 | 83,000 | 82,600 | 130,300 | 111,900 | 125,600 | 105,200 | 113,300 | 129,900 | 132,700 | 135,900 | 136,400 | 142,200 | 137,100 | 123,600 | 128,700 | 129,000 |
| Long-term debt | US$ in thousands | 1,101,800 | 1,704,000 | 1,712,900 | 1,697,900 | 1,656,400 | — | — | — | 1,264,800 | — | — | 615,200 | 590,500 | 630,200 | 666,400 | 752,800 | 540,800 | 559,700 | 604,700 | 617,200 |
| 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 |
| Return on total capital | -9.57% | -13.36% | 2.61% | 2.84% | 2.93% | 7.29% | 18.76% | 15.95% | 6.45% | 16.55% | 17.35% | 10.24% | 10.70% | 10.80% | 10.71% | 10.57% | 12.04% | 10.89% | 10.93% | 10.94% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-196,300K ÷ ($1,101,800K + $949,100K)
= -9.57%
To analyze Mativ Holdings Inc's return on total capital, we observe that the trend has been fluctuating over the past eight quarters. In Q4 2023, the return on total capital was only 0.47%, significantly lower than the previous quarter's value of 2.91%. This decrease indicates a potential decrease in the company's ability to generate profits from its total invested capital.
Looking at the broader trend, Mativ Holdings Inc's return on total capital has been inconsistent, with some quarters showing higher returns (e.g., Q3 2022 at 5.15% and Q4 2022 at 2.62%) and others demonstrating lower returns (e.g., Q4 2023 at 0.47%). This inconsistency may suggest varying efficiency in the company's capital utilization or profitability over time.
It is essential for investors and stakeholders to closely monitor Mativ Holdings Inc's return on total capital to understand the company's ability to generate returns relative to the total capital invested. A sustained improvement or decline in this ratio could indicate underlying shifts in the company's financial health and operational efficiency, warranting further investigation.
Peer comparison
Dec 31, 2023