Mattel Inc (MAT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.27 | 5.00 | 3.30 | 3.64 | 4.55 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.97 | 3.06 | 3.53 | 4.28 | 4.07 |
Based on the provided data, let's analyze the activity ratios of Mattel Inc:
1. Inventory Turnover:
- Mattel's inventory turnover has been fluctuating over the years. It was 4.55 in 2020, decreased to 3.64 in 2021, further dropped to 3.30 in 2022, and then showed an improvement to 5.00 in 2023 and 5.27 in 2024. A higher inventory turnover indicates that the company is selling its inventory more efficiently, which is a positive sign for Mattel.
2. Receivables Turnover:
- The data shows that there is no information available for receivables turnover for the years 2020 to 2024. This could be due to the nature of Mattel's business, where they may not have significant accounts receivable or have a different payment structure.
3. Payables Turnover:
- Similarly, there is no data provided for payables turnover for the years 2020 to 2024. Payables turnover ratio indicates how quickly a company pays its suppliers. The lack of information makes it challenging to assess Mattel's payment behavior towards its suppliers.
4. Working Capital Turnover:
- Mattel's working capital turnover has been gradually decreasing over the years, from 4.07 in 2020 to 2.97 in 2024. A declining working capital turnover could suggest that the company is becoming less efficient in generating revenue relative to its working capital. This trend may need further investigation to understand the underlying reasons and implications.
In summary, while Mattel has shown improvements in inventory turnover, the lack of data for receivables and payables turnover limits a comprehensive analysis of its overall activity ratios. The declining trend in working capital turnover raises some concerns about the company's efficiency in utilizing its working capital. Further analysis and contextual information would be needed to provide a more detailed assessment of Mattel Inc's activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.22 | 73.01 | 110.50 | 100.20 | 80.28 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, let's analyze Mattel Inc's activity ratios:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand for Mattel Inc has fluctuated over the years.
- In 2020, it was 80.28 days, increased to 100.20 days in 2021, further increased to 110.50 days in 2022, then decreased to 73.01 days in 2023, and finally declined to 69.22 days in 2024.
- A higher number of days indicates that Mattel Inc may be holding onto inventory for a longer period before selling it, which can tie up cash and lead to higher carrying costs.
- The decreasing trend from 2022 to 2024 may suggest that Mattel Inc is managing its inventory more efficiently and could potentially be reducing excess inventory levels.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on the Days of Sales Outstanding for Mattel Inc for any of the years.
- DSO measures how quickly a company collects its accounts receivable. A lower DSO is generally favorable as it indicates faster collection of cash from customers.
3. Number of Days of Payables:
- Similar to DSO, the data does not provide information on the Number of Days of Payables for Mattel Inc for any of the years.
- The Number of Days of Payables measures how long it takes for a company to pay its suppliers. A longer period may indicate a favorable position as it could suggest that Mattel Inc is using its suppliers' funds to finance operations.
In conclusion, while the information on Days of Inventory on Hand for Mattel Inc points to fluctuations in inventory management efficiency over the years, the absence of data on DSO and Payables limits a comprehensive analysis of the company's overall working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 11.58 | 6.98 | 9.67 |
| Total asset turnover | 0.82 | 0.85 | 0.88 | 0.85 | 0.83 |
The fixed asset turnover ratio for Mattel Inc has shown a fluctuating trend over the years. In 2020, the company's fixed asset turnover was 9.67, indicating that the company generated $9.67 in revenue for every dollar invested in fixed assets. This ratio decreased to 6.98 in 2021 and then significantly increased to 11.58 in 2022, reflecting a higher efficiency in utilizing its fixed assets to generate revenue. However, the data for 2023 and 2024 is unavailable.
When looking at the total asset turnover ratio, a similar pattern of fluctuation is observed. In 2020, Mattel had a total asset turnover of 0.83, slightly increasing to 0.85 in 2021 and 2023. The ratio then slightly decreased to 0.82 in 2024. This indicates that the company generated $0.83 to $0.85 in revenue for every dollar of total assets held during the respective years.
Overall, the trend in both the fixed asset turnover and total asset turnover ratios for Mattel Inc suggests varying levels of efficiency in utilizing its assets to generate revenue over the years, with some improvements seen in certain periods. Monitoring these ratios can provide valuable insights into the company's operational effectiveness and asset utilization efficiency.