Mattel Inc (MAT)

Liquidity ratios

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
Current ratio 2.38 2.45 2.58 2.49 2.33 2.33 2.35 2.44 2.30 1.96 1.82 1.71 1.80 1.64 1.94 1.93 1.83 1.57 1.47 1.60
Quick ratio 1.05 0.56 0.71 1.03 0.94 0.35 0.29 0.48 0.64 0.22 0.18 0.35 0.46 0.09 0.34 0.57 0.56 0.27 0.33 0.44
Cash ratio 1.05 0.56 0.71 1.03 0.94 0.35 0.29 0.48 0.64 0.22 0.18 0.35 0.46 0.09 0.34 0.57 0.56 0.27 0.33 0.44

The liquidity ratios of Mattel Inc indicate the company's ability to meet its short-term obligations.

1. Current Ratio: The current ratio measures the ability of a company to pay its short-term obligations using its current assets. Mattel's current ratio has been consistently above 1, which is considered a good sign as it indicates the company has more current assets than current liabilities. The current ratio has shown an increasing trend over the years, reaching 2.38 as of December 31, 2024, indicating an improved liquidity position.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Mattel's quick ratio has shown fluctuations over the years, with some periods showing levels below 1. However, the quick ratio improved significantly to 1.05 as of December 31, 2024, indicating that the company has an increased ability to meet its short-term obligations without relying on inventory.

3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, measuring the ability of a company to cover its current liabilities with cash and cash equivalents only. Mattel's cash ratio has also shown fluctuations over the years, with some periods showing levels below 1. However, similar to the quick ratio, the cash ratio improved to 1.05 as of December 31, 2024, indicating that the company has a healthy level of cash reserves to cover its short-term liabilities.

Overall, the liquidity ratios of Mattel Inc have shown improvement over the years, with the current, quick, and cash ratios indicating a strengthened ability to meet its short-term financial obligations.

Additional liquidity measure

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
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

The cash conversion cycle is an important metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash inflows from sales. For Mattel Inc, the cash conversion cycle has fluctuated over the past few years, indicating the efficiency of its working capital management.

From December 31, 2023, to March 31, 2024, there was a significant improvement in the cash conversion cycle, with a decrease from 73.01 days to 87.15 days. This indicates that Mattel Inc was able to reduce the time it takes to convert its resources into cash during this period.

However, from June 30, 2024, to September 30, 2024, there was a slight increase in the cash conversion cycle from 102.42 days to 99.94 days. This may suggest that the company faced challenges in managing its working capital efficiently during this period.

Overall, it appears that Mattel Inc has been able to effectively manage its cash conversion cycle, with some fluctuations over the analyzed period. It is important for the company to continue monitoring and improving its working capital management to ensure optimal cash flow and operational efficiency.