Mattel Inc (MAT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,167,250 | 5,027,570 | 4,960,210 | 4,413,210 | 4,764,340 |
| Payables | US$ in thousands | 442,286 | 471,475 | 579,152 | 495,363 | 459,357 |
| Payables turnover | 11.68 | 10.66 | 8.56 | 8.91 | 10.37 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,167,250K ÷ $442,286K
= 11.68
The payables turnover ratio for Mattel Inc has shown a fluctuating trend over the past five years. The ratio has increased from 10.37 in 2019 to 11.68 in 2023, indicating that the company is paying off its accounts payable more frequently within a year. A higher payables turnover ratio suggests that the company is managing its trade credit effectively and efficiently.
However, it is important to note that the ratio dipped in 2021 to 8.56 before increasing again in the following years. This could indicate a temporary delay in paying off suppliers or managing payables efficiently during that period. Overall, the increasing trend in the payables turnover ratio reflects positively on Mattel Inc's ability to manage its accounts payable effectively and maintain good relationships with its suppliers.