Mattel Inc (MAT)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.33 | 3.65 | 3.56 | 4.19 | 5.00 | 3.58 | 2.88 | 3.00 | 3.30 | 2.83 | 2.61 | 3.02 | 3.65 | 3.18 | 3.17 | 4.04 | 4.55 | 3.48 | 3.28 | 4.30 | |
| DOH | days | 68.52 | 99.94 | 102.42 | 87.15 | 73.01 | 102.08 | 126.91 | 121.63 | 110.50 | 129.08 | 139.75 | 120.85 | 100.10 | 114.92 | 115.12 | 90.24 | 80.28 | 104.85 | 111.22 | 84.79 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.33
= 68.52
The days of inventory on hand (DOH) for Mattel Inc have shown fluctuations over the period from March 31, 2020, to December 31, 2024. The trend indicates that the company has experienced varying levels of efficiency in managing its inventory.
From March 31, 2020, to June 30, 2020, there was a significant increase in DOH, which suggests that Mattel may have been holding onto inventory for a longer period. This could be due to various factors such as production delays, changes in demand, or supply chain issues.
Subsequently, there were fluctuations in the DOH figures, with peaks observed in June 30, 2021, and June 30, 2022, indicating potential inventory management challenges during those periods. High DOH values can tie up capital in unsold inventory, leading to potential storage costs and possible obsolescence risks.
The company seemed to have made improvements by reducing the number of days of inventory on hand towards the end of the period, with a notable decrease observed in December 31, 2023, and December 31, 2024. Lower DOH values can signify better inventory turnover and more efficient management practices, potentially freeing up capital for other business activities.
Overall, Mattel Inc should continue to monitor its inventory levels closely to ensure optimal balance between carrying enough inventory to meet demand while avoiding excessive holding costs. Implementing strategies to improve inventory turnover and forecasting accuracy could help enhance the company's operational and financial performance in the future.