Mattel Inc (MAT)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 2.33 2.33 2.35 2.44 2.30 1.96 1.82 1.71 1.80 1.61 1.94 1.95 1.84 1.59 1.48 1.60 1.76 1.61 1.79 1.89
Quick ratio 1.75 1.55 1.15 1.17 1.37 1.10 0.85 0.91 1.13 0.94 1.04 1.20 1.33 1.08 0.82 0.91 1.23 1.00 0.89 1.00
Cash ratio 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 0.34 0.44 0.49 0.14 0.18 0.38

Mattel Inc's liquidity ratios have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been relatively stable, ranging from 1.61 to 2.44. This indicates that Mattel has been able to meet its short-term obligations comfortably throughout the periods analyzed.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventories from current assets, has shown more variability, ranging from 0.82 to 1.75. Despite some fluctuations, the quick ratio has generally been above 1, indicating that Mattel has a relatively healthy level of liquid assets to cover its short-term liabilities.

The cash ratio, the most conservative liquidity ratio which only includes cash and cash equivalents in the numerator, has also fluctuated significantly, ranging from 0.09 to 0.94. This implies that the company's ability to cover its short-term liabilities with cash alone has varied over the periods.

Overall, while the current and quick ratios suggest that Mattel has maintained a satisfactory level of liquidity to meet its short-term obligations, the fluctuations in the cash ratio may warrant further monitoring to ensure the company's ability to cover immediate liabilities with cash remains adequate in the long term.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 83.58 138.43 111.73 96.35 90.72 130.33 108.83 93.03 91.47 130.95 89.42 77.07 89.17 128.98 84.93 65.96 81.28 126.33 94.65 81.17

The cash conversion cycle of Mattel Inc has shown fluctuations over the past few quarters. The cash conversion cycle is a metric that indicates how efficiently a company manages its working capital, from the time it pays suppliers for inventory to the time it receives cash from customers for those goods.

From the data provided, we can see that the cash conversion cycle ranged from a low of 65.96 days in March 2020 to a high of 138.43 days in September 2023. A longer cash conversion cycle suggests that Mattel is taking longer to convert its investment in inventory back into cash, which may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.

The trend in the cash conversion cycle appears to be somewhat volatile, with fluctuations between quarters. It is essential for Mattel to closely monitor and manage its working capital components to ensure that the overall cash conversion cycle remains at optimal levels. This could involve improving inventory management, streamlining accounts receivable processes, and negotiating better payment terms with suppliers.

Overall, the cash conversion cycle analysis highlights the importance of effective working capital management for Mattel Inc to maintain healthy cash flows and financial stability.