Mattel Inc (MAT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,261,360 | 761,235 | 731,362 | 762,181 | 630,028 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,342,480 | 1,187,750 | 1,598,250 | 1,355,380 | 1,276,910 |
| Cash ratio | 0.94 | 0.64 | 0.46 | 0.56 | 0.49 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,261,360K
+ $—K)
÷ $1,342,480K
= 0.94
The cash ratio of Mattel Inc has shown an increasing trend over the past five years, indicating the company's improved ability to cover its short-term liabilities with cash and cash equivalents. The ratio increased from 0.49 in 2019 to 0.94 in 2023, peaking during the latest year. This suggests that Mattel has strengthened its liquidity position, which can help the company meet its immediate financial obligations more effectively. The rising cash ratio reflects positively on Mattel's ability to manage its short-term financial obligations and indicates an improvement in its liquidity position over the years.