Mativ Holdings Inc. (MATV)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.85 | 2.78 | 3.12 | 3.54 | 2.44 |
Mativ Holdings Inc. has consistently maintained a strong solvency position based on the solvency ratios provided.
The Debt-to-assets ratio for Mativ Holdings Inc. remained stable at 0.00 across the years 2020 to 2024. This indicates that the company has no debt relative to its total assets, suggesting a low financial risk and a healthy financial position.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio for Mativ Holdings Inc. also stayed at 0.00 throughout the five-year period. This signifies that the company's capital and equity structure are not burdened by debt, further underscoring its solid financial standing.
The Financial leverage ratio for Mativ Holdings Inc. started at 2.44 in 2020 and showed some fluctuations over the subsequent years, with values of 3.54 in 2021, 3.12 in 2022, 2.78 in 2023, and 2.85 in 2024. Despite these changes, the ratios generally remained at moderate levels, indicating that the company has a reasonable amount of debt in its capital structure compared to equity.
Overall, the consistent low debt ratios and the moderate financial leverage ratio suggest that Mativ Holdings Inc. has a sound solvency position, with a well-balanced capital structure and minimal financial risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -0.06 | -6.28 | -0.21 | 2.61 | 4.19 |
Mativ Holdings Inc.'s interest coverage ratio has been fluctuating significantly over the years. As of December 31, 2020, the interest coverage ratio was 4.19, indicating that the company was generating enough operating income to cover its interest expenses comfortably.
However, by December 31, 2021, the interest coverage ratio had decreased to 2.61, suggesting that the company's ability to cover its interest payments had weakened. This downward trend continued as of December 31, 2022, when the interest coverage ratio fell to -0.21. A negative interest coverage ratio implies that the company's operating income was insufficient to cover its interest expenses.
Furthermore, the interest coverage ratio deteriorated significantly by December 31, 2023, when it reached -6.28. This sharp decline indicates a severe financial strain, where the company's earnings were insufficient to cover its interest obligations multiple times over.
By December 31, 2024, the interest coverage ratio further worsened to -0.06, emphasizing the ongoing financial challenges faced by Mativ Holdings Inc. The negative interest coverage ratios in the latter years suggest a potential risk of default on the company's debt obligations if the trend persists.