Mattel Inc (MAT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,126,920 | 3,122,350 | 2,729,000 | 2,874,500 | 2,482,900 |
| Total current liabilities | US$ in thousands | 1,315,720 | 1,342,480 | 1,187,700 | 1,598,300 | 1,355,400 |
| Current ratio | 2.38 | 2.33 | 2.30 | 1.80 | 1.83 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,126,920K ÷ $1,315,720K
= 2.38
The current ratio of Mattel Inc has shown a consistent trend of improvement over the past five years. As of December 31, 2020, the current ratio was 1.83, slightly declining to 1.80 by December 31, 2021. However, from December 31, 2021, onwards, there has been a steady increase in the current ratio, reaching 2.38 by December 31, 2024.
This upward trend indicates that Mattel Inc has been able to strengthen its liquidity position and improve its ability to meet short-term obligations as they come due. A current ratio above 1 indicates that the company has more current assets than current liabilities, with a higher ratio suggesting a healthier financial position in terms of short-term solvency.
Overall, the increasing current ratio of Mattel Inc over the years is a positive sign, reflecting improved liquidity and a better ability to cover short-term obligations with current assets.