Mattel Inc (MAT)

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory within a specific period. A higher inventory turnover ratio generally signifies that a company is selling its goods quickly and not overstocking, while a lower ratio may suggest excess inventory or slow sales.

Analyzing the inventory turnover trend for Mattel Inc over the past five years, we see fluctuations in the ratio:

- In 2023, the inventory turnover ratio was 9.04, representing a significant increase compared to the previous year. This indicates that Mattel Inc managed its inventory more efficiently in 2023, possibly through better sales strategies or inventory management techniques.

- In 2022, the inventory turnover ratio was 5.62, which was lower than the ratio in the following years. This lower ratio may suggest slower sales or excess inventory levels, which could impact the company's liquidity and profitability.

- In 2021, the inventory turnover ratio increased to 6.38, showing some improvement from the previous year but still lower than the ratios in 2023 and 2019.

- In 2020, the inventory turnover ratio was 8.35, indicating that the company was turning over its inventory at a slightly slower pace compared to 2019.

- In 2019, the inventory turnover ratio was 9.62, reflecting a relatively high turnover rate, which could imply efficient inventory management and strong sales performance during that period.

Overall, the fluctuating trend in Mattel Inc's inventory turnover ratio suggests varying levels of inventory management effectiveness over the years. It is essential for the company to maintain a balance in inventory levels to ensure optimal operational efficiency and financial performance.