Mattel Inc (MAT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,387,910 | 1,261,360 | 761,200 | 731,400 | 762,200 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,315,720 | 1,342,480 | 1,187,700 | 1,598,300 | 1,355,400 |
| Cash ratio | 1.05 | 0.94 | 0.64 | 0.46 | 0.56 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,387,910K
+ $—K)
÷ $1,315,720K
= 1.05
The cash ratio of Mattel Inc has shown fluctuating trends over the past five years.
In December 2020, the cash ratio stood at 0.56, indicating that for every dollar of current liabilities, the company had $0.56 in cash and cash equivalents. This suggests a relatively lower liquidity position at that time.
By December 2021, the cash ratio decreased to 0.46, signaling a decline in liquidity as the company may have had fewer cash reserves to cover its short-term obligations.
However, there was a notable improvement in the cash ratio by December 2022, which increased to 0.64. This suggests that the company may have bolstered its cash position relative to its current liabilities.
In December 2023, the cash ratio saw a significant uptick to 0.94, indicating a stronger liquidity position compared to the previous years. This increase may suggest better cash management or improved ability to meet short-term obligations.
By December 2024, the cash ratio further improved to 1.05, surpassing the ideal threshold of 1. This implies that the company had more than enough cash and cash equivalents to cover its current liabilities, indicating a very strong liquidity position.
Overall, the trend in Mattel Inc's cash ratio demonstrates fluctuations but ends on a positive note with a solid improvement in liquidity over the five-year period.