Mativ Holdings Inc. (MATV)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,642,400 | 3,117,800 | 3,648,900 | 3,674,800 | 3,669,200 | 3,712,700 | 2,395,300 | 2,441,900 | 2,420,300 | 2,419,800 | 2,423,300 | 1,587,500 | 1,584,900 | 1,590,600 | 1,578,100 | 1,655,200 | 1,471,700 | 1,450,200 | 1,489,400 | 1,485,700 |
| 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 |
| Financial leverage ratio | 2.78 | 4.63 | 3.18 | 3.17 | 3.11 | 3.28 | 3.45 | 3.48 | 3.55 | 3.81 | 3.71 | 2.43 | 2.44 | 2.53 | 2.60 | 2.80 | 2.46 | 2.52 | 2.60 | 2.64 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,642,400K ÷ $949,100K
= 2.78
Mativ Holdings Inc's financial leverage ratio has fluctuated over the past eight quarters, ranging from a low of 2.78 in Q4 2023 to a high of 4.63 in Q3 2023. The company's financial leverage ratio has shown a general upward trend since Q4 2022, with occasional dips in between.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. Therefore, Mativ Holdings Inc has consistently maintained a higher level of debt in its capital structure compared to equity. This approach can potentially amplify profits through leveraging, but it also increases financial risk due to the obligations associated with debt repayment.
The significant fluctuations in the financial leverage ratio suggest that Mativ Holdings Inc's capital structure has been evolving, possibly due to changes in financing strategies or business operations. Investors and stakeholders should closely monitor the company's financial leverage ratio to assess its ability to meet its debt obligations and evaluate the associated financial risks.
Peer comparison
Dec 31, 2023