Mativ Holdings Inc. (MATV)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Mativ Holdings Inc.'s solvency ratios reflect a strong financial position with consistently low debt levels relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been consistently at 0.00 across multiple periods, indicating that the company is not highly leveraged and potentially has minimal to no debt obligations.
The financial leverage ratio, which measures the extent of a company's financial leverage, has shown some fluctuations over the periods but generally remained within a moderate range. The ratio decreased from 2.80 as of March 31, 2020, to 2.85 as of December 31, 2024, signifying that the company's reliance on debt financing relative to equity has been relatively stable.
Overall, based on these solvency ratios, Mativ Holdings Inc. appears to have a conservative financial structure with a low level of debt compared to its assets, capital, and equity, indicating a healthy solvency position and lower financial risk exposure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Mativ Holdings Inc.'s interest coverage ratio has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.
Initially, from March 31, 2020, to June 30, 2021, the interest coverage ratio showed a generally positive trend, improving from 2.30 to 5.03. This improvement suggests that the company's operating income was sufficient to cover its interest expenses comfortably during this period.
However, from September 30, 2021, to June 30, 2022, there was a decline in the interest coverage ratio, falling to 1.91 and then 1.97. This indicates a potential decrease in the company's ability to cover its interest costs from its operating earnings in these quarters.
The most concerning trend began from September 30, 2022, with a significant drop in the interest coverage ratio to -4.11 by December 31, 2023. This negative ratio suggests that the company's operating income was insufficient to cover its interest expenses, raising serious concerns about its financial stability and ability to meet debt obligations.
The interest coverage ratio continued to deteriorate further into negative figures until June 30, 2024, with ratios reaching -6.14. However, by the end of December 31, 2024, there was a slight recovery with a positive interest coverage ratio of 0.23.
Overall, the downward trend in Mativ Holdings Inc.'s interest coverage ratio from September 2022 to June 2024 indicates a worsening financial position and a potential risk of defaulting on interest payments. The company may need to closely monitor and improve its earnings generation capacity to ensure it can meet its interest obligations effectively in the future.