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Mativ Holdings (Mativ Holdings) ROE %

: 77.78% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Mativ Holdings's annualized net income for the quarter that ended in Dec. 2023 was $631 Mil. Mativ Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $811 Mil. Therefore, Mativ Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was 77.78%.

The historical rank and industry rank for Mativ Holdings's ROE % or its related term are showing as below:

MATV' s ROE % Range Over the Past 10 Years
Min: -30.29   Med: 14.15   Max: 18.75
Current: -30.29

During the past 13 years, Mativ Holdings's highest ROE % was 18.75%. The lowest was -30.29%. And the median was 14.15%.

MATV's ROE % is ranked worse than
93.96% of 1539 companies
in the Chemicals industry
Industry Median: 5.59 vs MATV: -30.29

Mativ Holdings ROE % Historical Data

The historical data trend for Mativ Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Mativ Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.85 13.44 13.35 -0.71 -29.08

Mativ Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.86 -2.63 -1.56 -199.78 77.78

Competitive Comparison

For the Specialty Chemicals subindustry, Mativ Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Mativ Holdings ROE % Distribution

For the Chemicals industry and Basic Materials sector, Mativ Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Mativ Holdings's ROE % falls into.



Mativ Holdings ROE % Calculation

Mativ Holdings's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-309.5/( (1179.3+949.1)/ 2 )
=-309.5/1064.2
=-29.08 %

Mativ Holdings's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=630.8/( (673+949.1)/ 2 )
=630.8/811.05
=77.78 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Mativ Holdings  (NYSE:MATV) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=630.8/811.05
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(630.8 / 1809.2)*(1809.2 / 2880.1)*(2880.1 / 811.05)
=Net Margin %*Asset Turnover*Equity Multiplier
=34.87 %*0.6282*3.5511
=ROA %*Equity Multiplier
=21.91 %*3.5511
=77.78 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=630.8/811.05
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (630.8 / -67.2) * (-67.2 / 11.2) * (11.2 / 1809.2) * (1809.2 / 2880.1) * (2880.1 / 811.05)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -9.3869 * -6 * 0.62 % * 0.6282 * 3.5511
=77.78 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Mativ Holdings ROE % Related Terms

Thank you for viewing the detailed overview of Mativ Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Mativ Holdings (Mativ Holdings) Business Description

Traded in Other Exchanges
Address
100 North Point Center East, Suite 600, Alpharetta, GA, USA, 30022
Mativ Holdings Inc is a diversified producer of premium specialty papers and resin-based products. It manufactures and sells paper and reconstituted tobacco products to the tobacco industry as well as specialized paper products. The company operates in two segments namely Advanced Materials and Structures, which manufactures resin-based products used in specialty applications in the filtration, infrastructure and construction, transportation, industrial, and medical end-markets, and Engineered Papers, which produces cigarette papers and reconstituted tobacco products for cigarette and cigar manufacturers, as well as various other non-tobacco paper products.
Executives
Jeffrey Keenan director C/O SCHWEITZER-MAUDUIT INTERNATIONAL, SUITE 600, ALPHARETTA GA 30022
William M Cook director 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Mark W Johnson officer: CLO, GC & Secretary 1600 ROYAL STREET, JASPER IN 47546
Gregory Thomas Weitzel officer: CFO 100 NORTH POINT CENTER EAST, SUITE 600, ALPHARETTA GA 30022
Julie Schertell director, officer: President, CEO 3460 PRESTON RIDGE ROAD, SUITE 600, ALPHARETTA GA 30005
John Rogers director ONE MIDTOWN PLAZA, 1360 PEACHTREE STREET NE, ATLANTA GA 30309
Anderson Davis Warlick director C/O SCHWEITZER-MAUDUIT INTERNATIONAL, 100 NORTH POINT CENTER EAST, STE 600, ALPHARETTA GA 30022
Shruti Singhal director 4 TESSENEER DRIVE, HIGHLAND HEIGHTS KY 41076
Michael W Rickheim officer: CHRO and CAO 3460 PRESTON RIDGE ROAD, SUITE 600, ALPHARETTA GA 30005
Tony R Thene director ALCOA INC., 201 ISABELLA STREET, PITTSBURGH PA 15212-5858
Cheryl Allegri officer: Controller C/O SWM, 100 NORTH POINT CENTER E, SUITE 600, ALPHARETTA GA 30022
Kimberly E Ritrievi director TETRA TECH, INC, 3475 E. FOOTHILL BLVD., PASADENA CA 91107
Jeffrey Kramer director, officer: Co-CEO C/O SCHWEITZER-MAUDUIT INTERNT'L, INC., SUITE 600, ALPHARETTA GA 30022
Tracey Peacock officer: EVP, AMS C/O SCHWEITZER-MAUDUIT INTERNATIONAL INC, 100 NORTH POINT CENTER EAST, STE 600, ALPHARETTA GA 30022
Mark L Bye director