Mattel Inc (MAT)
Payables 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 |
| Payables | US$ in thousands | 442,286 | 450,109 | 365,580 | 314,140 | 471,475 | 495,221 | 535,273 | 478,643 | 579,152 | 538,170 | 438,913 | 361,902 | 495,363 | 497,379 | 402,220 | 306,440 | 459,357 | 512,491 | 416,430 | 324,949 |
| Payables turnover | 11.68 | 11.08 | 13.43 | 15.90 | 10.66 | 10.53 | 9.76 | 10.59 | 8.54 | 8.95 | 10.69 | 12.45 | 8.89 | 8.54 | 10.77 | 14.58 | 9.91 | 6.92 | 8.55 | 11.45 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,167,250K ÷ $442,286K
= 11.68
The payables turnover ratio for Mattel Inc has exhibited fluctuations over the periods analyzed. The ratio measures how efficiently the company manages its trade credit by calculating how many times a company pays off its accounts payables within a specific period.
In the most recent period, as of December 31, 2023, the payables turnover ratio was 11.68, indicating that Mattel Inc paid off its accounts payables approximately 11.68 times during that year. This represents an improvement compared to the previous period.
Looking at the trend over time, the payables turnover ratio has shown variability, with peaks and troughs in different quarters. For example, the ratio was highest at 15.90 in March 2023 and lowest at 6.92 in March 2019.
Analyzing the payables turnover ratio can provide insights into the company's liquidity and relationship with suppliers. A higher ratio suggests that the company is efficiently managing its payables, potentially by negotiating better credit terms or promptly settling its obligations. On the other hand, a lower ratio may indicate inefficiencies in payment processes or difficulties in managing cash flow.
It is essential to consider the payables turnover ratio in conjunction with other financial metrics and industry benchmarks to gain a more comprehensive understanding of Mattel Inc's financial performance and management of its accounts payables.