Mattel Inc (MAT)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 68.52 | 99.94 | 102.42 | 87.15 | 73.01 | 102.08 | 126.91 | 121.63 | 110.50 | 129.08 | 139.75 | 120.85 | 100.10 | 114.92 | 115.12 | 90.24 | 80.28 | 104.85 | 111.22 | 84.79 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 68.52 | 99.94 | 102.42 | 87.15 | 73.01 | 102.08 | 126.91 | 121.63 | 110.50 | 129.08 | 139.75 | 120.85 | 100.10 | 114.92 | 115.12 | 90.24 | 80.28 | 104.85 | 111.22 | 84.79 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 68.52 + — – —
= 68.52
The cash conversion cycle of Mattel Inc has shown fluctuations over the years. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows, started at 84.79 days on March 31, 2020. It increased to 115.12 days on June 30, 2021, before declining to 73.01 days on December 31, 2023. The cycle peaked at 139.75 days on June 30, 2022.
Overall, there have been periods of improvement in the company's efficiency in managing its cash conversion cycle, indicated by lower days, particularly in December 2023 and December 2024. However, challenges are also evident, such as the significant increase in the cycle observed in June 2022, suggesting potential issues with inventory management, collections, or payment practices during that period.
Analyzing the cash conversion cycle can provide insights into a company's working capital management efficiency and operational effectiveness. Mattel Inc should continue to monitor and optimize its cash conversion cycle to enhance liquidity, profitability, and overall financial performance.