Mattel Inc (MAT)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,167,250 | 4,987,010 | 4,908,770 | 4,993,710 | 5,027,572 | 5,214,872 | 5,222,042 | 5,069,972 | 4,947,870 | 4,819,040 | 4,693,980 | 4,504,312 | 4,404,651 | 4,245,221 | 4,329,961 | 4,469,292 | 4,552,372 | 3,544,505 | 3,558,445 | 3,721,572 |
| Inventory | US$ in thousands | 571,609 | 790,521 | 971,614 | 961,048 | 894,064 | 1,083,770 | 1,177,550 | 969,166 | 777,184 | 854,477 | 818,037 | 626,469 | 528,474 | 679,482 | 727,864 | 560,645 | 495,504 | 701,567 | 722,394 | 615,828 |
| Inventory turnover | 9.04 | 6.31 | 5.05 | 5.20 | 5.62 | 4.81 | 4.43 | 5.23 | 6.37 | 5.64 | 5.74 | 7.19 | 8.33 | 6.25 | 5.95 | 7.97 | 9.19 | 5.05 | 4.93 | 6.04 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,167,250K ÷ $571,609K
= 9.04
Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period. A high inventory turnover ratio indicates efficient inventory management, while a low ratio may suggest overstocking or slow sales.
Based on Mattel Inc's inventory turnover over the past several quarters, we observe some fluctuations in the ratio. The inventory turnover has ranged from a low of 4.43 in June 2022 to a high of 9.19 in December 2019. In the most recent quarter ending December 2023, the inventory turnover was 9.04, indicating that Mattel sold and replaced its inventory approximately 9 times during that period.
The trend shows some variability, with periodic increases and decreases in the inventory turnover ratio. Generally, a higher inventory turnover ratio is preferred as it signifies that the company is efficiently managing its inventory levels. However, it is essential to analyze the trend over time to assess if the changes are consistent and sustainable.
Overall, based on the data provided, Mattel Inc has shown a relatively healthy inventory turnover ratio, indicating efficient management of its inventory levels.