Mattel Inc (MAT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,304,060 | 5,229,410 | 5,085,750 | 4,366,490 | 4,303,160 |
| Property, plant and equipment | US$ in thousands | 465,523 | 469,132 | 455,966 | 473,794 | 550,139 |
| Fixed asset turnover | 11.39 | 11.15 | 11.15 | 9.22 | 7.82 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,304,060K ÷ $465,523K
= 11.39
Mattel Inc's fixed asset turnover has been consistently strong over the past five years, ranging from 7.82 to 11.39. This indicates that the company is generating significant revenue relative to its investment in fixed assets, which include property, plant, and equipment. A high fixed asset turnover ratio is generally a positive sign as it shows that the company is efficient in utilizing its fixed assets to generate sales.
The increasing trend in fixed asset turnover from 2019 to 2023 suggests that Mattel Inc has been improving its operational efficiency and maximizing the use of its fixed assets to drive revenue growth. This efficiency could be attributed to factors such as effective asset management, better production processes, or improved inventory turnover.
Overall, a consistently high fixed asset turnover ratio demonstrates that Mattel Inc is effectively leveraging its fixed assets to generate revenue, showcasing operational efficiency and effective asset utilization.