Mativ Holdings Inc. (MATV)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 17,300 | 10,300 | -411,100 | -410,200 | -414,100 | -406,700 | -34,900 | -17,400 | 6,400 | 47,800 | 127,800 | 110,100 | 131,900 | 108,900 | 120,200 | 133,300 | 128,800 | 73,500 | 73,300 | 81,000 |
| Interest expense (ttm) | US$ in thousands | 74,700 | 68,400 | 66,900 | 76,700 | 84,900 | 98,900 | 105,900 | 98,100 | 86,100 | 73,500 | 65,000 | 57,700 | 46,100 | 39,000 | 31,500 | 26,500 | 30,500 | 29,300 | 28,200 | 35,200 |
| Interest coverage | 0.23 | 0.15 | -6.14 | -5.35 | -4.88 | -4.11 | -0.33 | -0.18 | 0.07 | 0.65 | 1.97 | 1.91 | 2.86 | 2.79 | 3.82 | 5.03 | 4.22 | 2.51 | 2.60 | 2.30 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $17,300K ÷ $74,700K
= 0.23
The interest coverage ratio of Mativ Holdings Inc. has fluctuated significantly over the years. From March 31, 2020, to March 31, 2021, the interest coverage improved steadily from 2.30 to 5.03, indicating the company's ability to cover its interest expenses with operating income. However, starting from June 30, 2021, the ratio began to decline, dropping to 1.97 by June 30, 2022.
The trend continued downward with a sharp decrease by September 30, 2023, where the interest coverage ratio turned negative, indicating that the company's operating income was insufficient to cover its interest expenses. This negative trend persisted until June 30, 2024, hitting a low of -6.14.
By the end of December 31, 2024, there was a slight improvement as the interest coverage ratio turned positive to 0.23. Overall, the data suggests that Mativ Holdings Inc. faced challenges in meeting its interest obligations in the latter part of the period under review.
Peer comparison
Dec 31, 2024