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

Company name
Symbol
Financial leverage ratio
Mativ Holdings Inc.
MATV
2.78
International Paper
IP
2.78
Sylvamo Corp
SLVM
3.19