Mattel Inc (MAT)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,379,538 | 5,353,838 | 5,428,738 | 5,436,208 | 5,441,300 | 5,222,500 | 5,059,500 | 5,208,000 | 5,434,700 | 5,827,700 | 5,834,200 | 5,624,900 | 5,457,800 | 5,288,700 | 5,158,100 | 4,863,800 | 4,583,700 | 4,431,600 | 4,281,500 | 4,409,500 |
| Total current assets | US$ in thousands | 3,126,920 | 3,180,380 | 2,604,370 | 2,735,500 | 3,122,350 | 3,042,100 | 2,423,700 | 2,366,300 | 2,729,000 | 3,083,200 | 2,714,400 | 2,635,700 | 2,874,500 | 2,629,200 | 2,173,800 | 2,092,900 | 2,482,900 | 2,599,900 | 2,026,100 | 1,807,100 |
| Total current liabilities | US$ in thousands | 1,315,720 | 1,298,620 | 1,011,160 | 1,099,110 | 1,342,480 | 1,304,600 | 1,031,100 | 969,000 | 1,187,700 | 1,576,100 | 1,488,200 | 1,544,700 | 1,598,300 | 1,600,800 | 1,122,400 | 1,082,600 | 1,355,400 | 1,658,400 | 1,381,600 | 1,126,000 |
| Working capital turnover | 2.97 | 2.85 | 3.41 | 3.32 | 3.06 | 3.01 | 3.63 | 3.73 | 3.53 | 3.87 | 4.76 | 5.16 | 4.28 | 5.14 | 4.91 | 4.81 | 4.07 | 4.71 | 6.64 | 6.47 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,379,538K ÷ ($3,126,920K – $1,315,720K)
= 2.97
The working capital turnover ratio reflects how efficiently Mattel Inc is utilizing its working capital to generate sales. The fluctuations in the working capital turnover ratio over time indicate changes in the company's operational efficiency and liquidity management.
From March 31, 2020, to June 30, 2020, Mattel's working capital turnover increased slightly from 6.47 to 6.64, suggesting improved efficiency in utilizing its working capital during this period. However, from September 30, 2020, to December 31, 2020, the ratio decreased significantly to 4.07, indicating a potential slowdown in sales relative to its working capital.
Throughout 2021 and early 2022, the working capital turnover ratio fluctuated within a range of 4.07 to 5.16. These variations could signify changes in Mattel's sales and working capital management strategies during this period.
Toward the end of 2022 and into 2024, there was a general downward trend in the working capital turnover ratio from 3.53 to 2.97. This decline suggests a potential decrease in the efficiency of converting working capital into sales, which could indicate operational challenges or a less optimal management of liquidity within the company.
Overall, analyzing Mattel's working capital turnover ratio provides valuable insights into the company's operational efficiency and liquidity management, highlighting periods of improved or deteriorating performance in utilizing its working capital to generate sales.