Mativ Holdings Inc. (MATV)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,447,900 | 2,623,100 | 2,607,500 | 2,652,700 | 2,642,400 | 3,117,800 | 3,648,900 | 3,674,800 | 3,675,900 | 3,712,700 | 2,395,300 | 2,441,900 | 2,412,800 | 2,419,800 | 2,423,300 | 1,587,500 | 1,584,900 | 1,590,600 | 1,578,100 | 1,655,200 |
| Total stockholders’ equity | US$ in thousands | 858,500 | 882,300 | 898,000 | 906,900 | 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 |
| Financial leverage ratio | 2.85 | 2.97 | 2.90 | 2.93 | 2.78 | 4.63 | 3.18 | 3.17 | 3.12 | 3.28 | 3.45 | 3.48 | 3.54 | 3.81 | 3.71 | 2.43 | 2.44 | 2.53 | 2.60 | 2.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,447,900K ÷ $858,500K
= 2.85
The financial leverage ratio of Mativ Holdings Inc. has shown fluctuations over the past few years. The ratio was relatively stable around 2.5 to 3.5 from March 2020 to March 2022, indicating a moderate level of financial leverage. However, there was a noticeable increase in the ratio in the following quarters, reaching a peak of 4.63 in September 2023 before decreasing to 2.78 by December 2023.
This significant spike in the financial leverage ratio suggests that Mativ Holdings Inc. may have increased its reliance on debt to finance its operations or investments during that period. The subsequent decrease in the ratio by December 2023 may indicate the company's efforts to reduce its debt levels or improve its financial structure.
Overall, it is essential for Mativ Holdings Inc. to maintain a balanced financial leverage ratio to ensure sustainable growth and minimize the risks associated with excessive leverage. Monitoring and managing the company's debt levels effectively will be critical in maintaining financial stability and investor confidence.
Peer comparison
Dec 31, 2024