Mattel Inc (MAT)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.22 | 73.01 | 110.50 | 100.20 | 80.28 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 69.22 | 73.01 | 110.50 | 100.20 | 80.28 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.22 + — – —
= 69.22
The cash conversion cycle (CCC) of Mattel Inc has shown some fluctuations over the years based on the provided data.
As of December 31, 2020, the CCC was 80.28 days, indicating that on average it took Mattel approximately 80 days to convert its investments in inventory and other resources into cash flows from sales.
By December 31, 2021, the CCC increased to 100.20 days, suggesting a lengthening of the time it took for the company to convert its investments into cash.
The trend continued with a further increase in the CCC to 110.50 days by December 31, 2022, signifying that Mattel faced challenges in efficiently managing its working capital and converting investments into cash.
However, there was a significant improvement in the CCC by December 31, 2023, dropping to 73.01 days, indicating that Mattel managed to streamline its processes and improve its cash conversion efficiency.
By December 31, 2024, the CCC decreased further to 69.22 days, demonstrating that Mattel continued to enhance its working capital management and speed up the conversion of investments into cash.
Overall, while there were fluctuations in Mattel's cash conversion cycle over the years, the general direction indicates improvements in efficiency and effectiveness in managing its cash conversion processes.