Mattel Inc (MAT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.82% | 47.48% | 45.66% | 48.13% | 48.95% |
| Operating profit margin | 12.91% | 10.32% | 8.37% | 9.90% | 3.97% |
| Pretax margin | 11.57% | 8.55% | 9.28% | 8.63% | 4.01% |
| Net profit margin | 10.07% | 3.94% | 7.25% | 16.55% | 2.70% |
Based on the provided data, let's analyze the profitability ratios of Mattel Inc over the five-year period from 2020 to 2024:
1. Gross Profit Margin:
- There was a gradual decrease in the gross profit margin from 48.95% in 2020 to 45.66% in 2022, followed by an increase to 50.82% in 2024. This indicates fluctuations in the company's profitability on sales, with an overall improvement in the latest year.
2. Operating Profit Margin:
- The operating profit margin showed significant variability, starting at 3.97% in 2020, peaking at 12.91% in 2024. This suggests that the company became more efficient in managing its operating expenses and generating profits.
3. Pre-tax Margin:
- The pre-tax margin fluctuated over the five years, reaching a peak of 11.57% in 2024. This demonstrates the company's ability to generate profits before accounting for taxes, with varying levels of profitability in different years.
4. Net Profit Margin:
- The net profit margin increased significantly from 2.70% in 2020 to 16.55% in 2021, then declined over the next years. The margins in 2023 and 2024 were 3.94% and 10.07%, respectively. This indicates that Mattel Inc experienced fluctuations in its bottom-line profitability.
In summary, Mattel Inc showed improvements in profitability ratios such as operating profit margin and gross profit margin over the five-year period, despite fluctuations in pre-tax and net profit margins. It is crucial for the company to closely monitor and manage its cost efficiency and revenue generation to ensure sustained profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.61% | 8.73% | 7.36% | 8.45% | 3.30% |
| Return on assets (ROA) | 8.28% | 3.33% | 6.38% | 14.12% | 2.24% |
| Return on total capital | 32.74% | 26.14% | 30.99% | 46.19% | 63.69% |
| Return on equity (ROE) | 23.93% | 9.98% | 19.16% | 57.56% | 20.72% |
The profitability ratios of Mattel Inc have shown fluctuations over the years.
- The Operating return on assets (Operating ROA) has increased from 3.30% in December 2020 to 10.61% in December 2024, indicating the company's ability to generate operating profits from its assets.
- Return on assets (ROA) experienced significant fluctuations, with a notable increase to 14.12% in December 2021 but then decreased to 8.28% by December 2024. This ratio reflects the company's overall profitability in generating earnings from its total assets.
- Return on total capital peaked at 63.69% in December 2020 and has since fluctuated, reaching 32.74% in December 2024. This ratio shows the efficiency of Mattel in generating returns for both equity and debt holders.
- Return on equity (ROE) had a remarkable increase to 57.56% in December 2021 but decreased to 23.93% by December 2024. ROE reflects how well the company is utilizing shareholders' equity to generate profits.
Overall, while there have been fluctuations in profitability ratios over the years, Mattel Inc has shown the ability to generate strong returns on assets, total capital, and equity, albeit with some variability in performance.