Mattel Inc (MAT)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,304,061 | 5,051,601 | 4,877,681 | 5,012,191 | 5,229,410 | 5,657,040 | 5,646,910 | 5,452,890 | 5,094,018 | 4,905,228 | 4,774,438 | 4,465,397 | 4,366,480 | 4,271,190 | 4,130,860 | 4,267,729 | 4,360,098 | 4,410,678 | 4,359,988 | 4,329,823 |
| Total current assets | US$ in thousands | 3,122,350 | 3,042,100 | 2,423,740 | 2,366,330 | 2,729,040 | 3,083,160 | 2,714,450 | 2,635,700 | 2,874,530 | 2,715,150 | 2,173,830 | 2,109,540 | 2,496,690 | 2,615,710 | 2,014,140 | 1,807,090 | 2,247,970 | 2,437,000 | 1,915,520 | 1,895,090 |
| Total current liabilities | US$ in thousands | 1,342,480 | 1,304,560 | 1,031,080 | 968,962 | 1,187,750 | 1,576,110 | 1,488,190 | 1,544,710 | 1,598,250 | 1,686,840 | 1,122,390 | 1,082,570 | 1,355,380 | 1,649,420 | 1,359,780 | 1,125,980 | 1,276,910 | 1,513,450 | 1,069,720 | 1,001,410 |
| Working capital turnover | 2.98 | 2.91 | 3.50 | 3.59 | 3.39 | 3.75 | 4.60 | 5.00 | 3.99 | 4.77 | 4.54 | 4.35 | 3.83 | 4.42 | 6.31 | 6.27 | 4.49 | 4.78 | 5.15 | 4.84 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,304,061K ÷ ($3,122,350K – $1,342,480K)
= 2.98
The working capital turnover ratio for Mattel Inc has shown fluctuation over the past few years. The ratio indicates how efficiently the company is managing its working capital to generate sales. A higher ratio typically suggests better efficiency in utilizing working capital.
From the data provided, we can see that the working capital turnover ratio ranged from a low of 2.91 to a high of 6.31 over the period under review. The company experienced a relatively stable performance in managing working capital in the earlier periods, with ratios generally hovering between 3.39 and 5.00. However, in more recent periods, the ratio increased significantly, reaching its peak at 6.31 in Jun 30, 2020.
The notable increase in the working capital turnover ratio indicates that Mattel Inc has been more efficient in leveraging its working capital to drive sales during those periods. This can be a positive sign, showcasing improved operational efficiency and potentially better liquidity management.
It is important to note that a high working capital turnover ratio can also indicate aggressive revenue recognition practices or potential inventory management issues. Therefore, additional analysis and context are needed to fully understand the factors driving the changes in the working capital turnover ratio for Mattel Inc.