Mattel Inc (MAT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,122,350 | 2,729,040 | 2,874,530 | 2,496,690 | 2,247,970 |
| Total current liabilities | US$ in thousands | 1,342,480 | 1,187,750 | 1,598,250 | 1,355,380 | 1,276,910 |
| Current ratio | 2.33 | 2.30 | 1.80 | 1.84 | 1.76 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,122,350K ÷ $1,342,480K
= 2.33
The current ratio of Mattel Inc has shown a consistent improvement over the past five years, increasing from 1.76 in 2019 to 2.33 in 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has strengthened over time.
A current ratio above 1 suggests that the company has more current assets than current liabilities, providing a buffer to cover its immediate financial obligations.
The current ratio exceeding 2 in recent years indicates that Mattel Inc has a healthy liquidity position, with more than double the current assets compared to its current liabilities. This suggests that the company has the capacity to pay off its short-term debts comfortably, which is a positive indication of financial health and stability.
Overall, an upward trend in the current ratio reflects an improving liquidity position for Mattel Inc, which may enhance its ability to weather any short-term financial challenges and seize opportunities for growth.