Mativ Holdings Inc. (MATV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,642,400 | 3,669,200 | 2,420,300 | 1,584,900 | 1,471,700 |
| Total stockholders’ equity | US$ in thousands | 949,100 | 1,179,300 | 682,200 | 649,600 | 597,700 |
| Financial leverage ratio | 2.78 | 3.11 | 3.55 | 2.44 | 2.46 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,642,400K ÷ $949,100K
= 2.78
Based on the data provided for Mativ Holdings Inc, the financial leverage ratio has shown variability over the past five years. The trend indicates fluctuations in the company's level of financial leverage, with the ratio decreasing from 3.55 in 2021 to 2.78 in 2023. This suggests that the company reduced its reliance on debt financing in the most recent year. However, it is important to note that the financial leverage ratio remains above 2, indicating that the company still has a considerable amount of debt in its capital structure compared to equity. This level of leverage may indicate potential financial risk for the company, as higher leverage can amplify both returns and losses. Overall, further analysis of the company's debt management and financial strategies would be beneficial to gain a deeper understanding of its financial health and risk profile.
Peer comparison
Dec 31, 2023