Mattel Inc (MAT)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	40.38	57.86	72.25	70.24	64.91	75.86	82.31	69.77	57.33	64.72	63.61	50.76	43.79	58.42	61.36	45.79	39.73	72.24	74.10	60.40
Days of sales outstanding (DSO)	days	74.45	113.52	66.67	49.07	60.04	89.14	63.94	57.72	76.86	106.99	59.94	55.64	86.43	113.33	57.48	45.20	78.39	106.86	63.26	52.64
Number of days of payables	days	31.24	32.94	27.18	22.96	34.23	34.66	37.41	34.46	42.72	40.76	34.13	29.33	41.05	42.76	33.91	25.03	36.83	52.77	42.71	31.87
Cash conversion cycle	days	83.58	138.43	111.73	96.35	90.72	130.33	108.83	93.03	91.47	130.95	89.42	77.07	89.17	128.98	84.93	65.96	81.28	126.33	94.65	81.17

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.38 + 74.45 – 31.24
= 83.58

The cash conversion cycle of Mattel Inc fluctuated over the past several quarters. It measures the time it takes for a company to convert its investments in inventory into cash flows from sales. The lower the cash conversion cycle, the more efficiently the company is managing its working capital.

In the most recent quarter as of December 31, 2023, Mattel Inc had a cash conversion cycle of 83.58 days, indicating an improvement in efficiency compared to the previous quarter. However, this figure is higher than the levels seen in the first quarter of 2021 and the second and third quarters of 2020.

Overall, Mattel Inc has experienced variability in its cash conversion cycle, with fluctuations both upward and downward. It is important for the company to continue monitoring and managing its inventory, accounts receivable, and accounts payable effectively to optimize its cash conversion cycle and improve overall liquidity and financial performance.