Mattel Inc (MAT)

Short-term

Turnover ratios

The Inventory turnover ratio for Mattel Inc has shown a fluctuating trend over the past few years, ranging from a low of 2.61 to a high of 5.33. This indicates that the company is managing its inventory levels differently over time, with potential implications for its working capital requirements and operational efficiency.

The Receivables turnover ratio data is not available, suggesting that it may be difficult to assess how quickly the company is collecting its accounts receivables and converting them into cash.

Similarly, the Payables turnover ratio data is not provided, which could have shed light on how efficiently the company is managing its trade payables and vendor obligations.

The Working capital turnover ratio for Mattel Inc has also displayed variability, indicating how efficiently the company is generating revenue relative to its working capital levels. The ratio has ranged from 2.85 to 6.64, with lower numbers suggesting a need for improvement in working capital management and higher numbers indicating better utilization of working capital.

Overall, the analysis of these activity ratios highlights the importance of effectively managing inventory, receivables, payables, and working capital to ensure optimal operational performance and financial health for Mattel Inc.

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Average number of days

Based on the provided data for Mattel Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- Mattel's DOH shows the number of days the company holds its inventory before selling it. A higher number of days indicates slower inventory turnover, which could tie up capital and increase holding costs.
- There is a fluctuating trend in Mattel's DOH over the periods, with the metric ranging from 68.52 days to 139.75 days, showing some inconsistency in managing inventory levels efficiently.
- Notably, the DOH peaked at 139.75 days on June 30, 2022, which may suggest potential issues such as excess or obsolete inventory.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO, which measures how long it takes for the company to collect payments from its customers.
- Without this data, it is challenging to assess Mattel's efficiency in collecting receivables and managing its working capital effectively.

3. Number of Days of Payables:
- The data also lacks information on the number of days of payables, which indicates the average time the company takes to pay its suppliers.
- Without this ratio, it is difficult to evaluate Mattel's payment practices and their impact on cash flow management.

In conclusion, based on the available information, it is clear that Mattel's inventory management warrants closer attention due to the fluctuating trends in Days of Inventory on Hand. Additional data on Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive view of Mattel's overall activity ratios and working capital efficiency.

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Long-term

The fixed asset turnover ratio for Mattel Inc has shown some fluctuations over the years, ranging from a low of 6.42 in June 2021 to a high of 12.44 in March 2022. This ratio indicates the company's efficiency in generating sales revenue from its fixed assets, with higher values generally being more favorable.

On the other hand, the total asset turnover ratio has been relatively stable, with values fluctuating around the range of 0.82 to 0.98. This ratio reflects the company's ability to generate sales from its total assets, including both fixed and current assets.

Overall, while the fixed asset turnover ratio has shown volatility, the total asset turnover ratio has remained relatively steady, indicating that Mattel Inc has been efficient in utilizing its assets to generate sales revenue over the analyzed period. Further analysis would be needed to understand the factors driving the fluctuation in the fixed asset turnover ratio and to assess the overall asset management efficiency of the company.