Mativ Holdings Inc. (MATV)
Debt-to-equity 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-equity ratio | 1.16 | 1.40 | 1.85 | 0.91 | 0.90 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,101,800K ÷ $949,100K
= 1.16
The debt-to-equity ratio of Mativ Holdings Inc has shown fluctuations over the past five years, indicating varying levels of leverage in the company's capital structure. The ratio decreased from 1.86 in 2021 to 0.91 in 2020, remaining stable at 0.91 in 2019. However, there was an increase in the ratio to 1.45 in 2022 and further to 1.18 in 2023, reflecting an upward trend in leverage.
A debt-to-equity ratio above 1 suggests that the company is relying more on debt financing than equity financing to fund its operations and growth. This indicates higher financial risk as a higher proportion of the company's assets are financed through debt, which can lead to increased interest expenses and potential liquidity challenges.
It is essential for stakeholders to closely monitor Mativ Holdings Inc's debt levels and evaluate the company's ability to manage its debt obligations effectively. Further analysis of the company's overall financial health and performance should be conducted in conjunction with the debt-to-equity ratio to gain a comprehensive understanding of its capital structure and risk profile.
Peer comparison
Dec 31, 2023