Mattel Inc (MAT)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,379,550 | 5,441,200 | 5,434,700 | 5,457,700 | 4,583,700 |
| Property, plant and equipment | US$ in thousands | — | — | 469,132 | 781,500 | 473,794 |
| Fixed asset turnover | — | — | 11.58 | 6.98 | 9.67 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,379,550K ÷ $—K
= —
Mattel Inc's fixed asset turnover ratio, a measure of how efficiently the company generates sales from its fixed assets, has shown fluctuations over the past years.
In December 31, 2020, the fixed asset turnover ratio was 9.67, indicating that for every dollar invested in fixed assets, the company generated $9.67 in sales. This suggests efficient utilization of fixed assets to drive revenue.
However, by December 31, 2021, the fixed asset turnover ratio decreased to 6.98, signaling a potential decline in the efficiency of utilizing fixed assets to generate sales. This could be a concern as it indicates a lower revenue generation from the same level of fixed asset investment.
The ratio then improved significantly by December 31, 2022, reaching 11.58, showing a notable increase in the efficiency of generating sales from fixed assets. This improvement suggests that the company was able to generate more revenue per dollar invested in fixed assets compared to the previous period.
Unfortunately, the data for December 31, 2023, and December 31, 2024, are not available (denoted as “—”), making it challenging to assess the trend and efficiency of fixed asset turnover for those years.
In conclusion, while the fixed asset turnover ratio for Mattel Inc has shown fluctuations, it is essential for the company to continue monitoring and improving this ratio to ensure optimal utilization of fixed assets in generating revenue.