Mativ Holdings Inc. (MATV)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.54 | 0.58 | 0.65 | 0.48 | 0.48 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,101,800K ÷ ($1,101,800K + $949,100K)
= 0.54
The debt-to-capital ratio of Mativ Holdings Inc has shown some fluctuations over the past five years. In 2023, the ratio decreased to 0.54 from 0.59 in 2022, indicating a lower level of debt relative to the total capital employed. This may suggest improved financial leverage and lower financial risk compared to the previous year.
When comparing 2023 to 2021, there has been a more significant reduction in the debt-to-capital ratio, decreasing from 0.65 to 0.54. This signifies a potential shift towards a more balanced capital structure with a lower reliance on debt financing.
However, it's worth noting that the ratio in 2023 is still higher compared to 2020 and 2019, where it stood at 0.48 for both years. This indicates that Mativ Holdings Inc may have increased its debt levels in recent years relative to its capital base, which could potentially increase financial risk and interest burden.
Overall, a decreasing trend in the debt-to-capital ratio in recent years suggests a positive development towards a healthier capital structure for the company.
Peer comparison
Dec 31, 2023