Mattel Inc (MAT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.71% | 47.45% | 51.65% | 51.37% | 45.95% |
| Operating profit margin | 10.59% | 12.92% | 14.35% | 8.58% | 0.86% |
| Pretax margin | 9.12% | 10.13% | 9.49% | 4.33% | -3.73% |
| Net profit margin | 4.04% | 7.53% | 17.76% | 2.83% | -5.08% |
Looking at the profitability ratios of Mattel Inc over the past five years, we can see some fluctuations in key margins:
1. Gross Profit Margin: The gross profit margin has been relatively stable, ranging from 45.95% in 2019 to 51.65% in 2021. This ratio indicates that the company is able to efficiently control its production costs while generating revenue.
2. Operating Profit Margin: The operating profit margin experienced some variability, ranging from 0.86% in 2019 to 14.35% in 2021. This margin reflects the company's ability to manage its operating expenses in relation to its revenue.
3. Pretax Margin: The pretax margin also shows fluctuation, with a low of -3.73% in 2019 and a high of 10.13% in 2022. This ratio demonstrates the company's ability to generate profits before accounting for taxes.
4. Net Profit Margin: The net profit margin shows significant variation, with a negative margin of -5.08% in 2019 and a high of 17.76% in 2021. This margin represents the company's actual bottom-line profitability after all expenses have been deducted.
Overall, while the gross profit margin has been relatively steady, the operating, pretax, and net profit margins have shown more significant fluctuations over the years. It indicates that Mattel Inc has been working on improving its operational efficiency and cost controls to enhance its profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.73% | 10.93% | 11.41% | 6.77% | 0.70% |
| Return on assets (ROA) | 3.33% | 6.38% | 14.12% | 2.23% | -4.11% |
| Return on total capital | 13.57% | 15.12% | 17.79% | 11.18% | 1.21% |
| Return on equity (ROE) | 9.97% | 19.16% | 57.56% | 20.25% | -43.01% |
Based on the provided data, we can observe the following trends in Mattel Inc's profitability ratios over the past five years:
1. Operating return on assets (Operating ROA):
- The Operating ROA has decreased from 11.41% in 2021 to 8.73% in 2023, indicating a decline in the company's efficiency in generating operating profits from its assets.
2. Return on assets (ROA):
- The ROA fluctuated significantly over the years, ranging from a negative -4.11% in 2019 to a peak of 14.12% in 2021. In 2023, the ROA decreased to 3.33%, suggesting a decrease in the company's overall profitability relative to its total assets.
3. Return on total capital:
- The Return on total capital has shown a consistent increase from 1.21% in 2019 to 13.57% in 2023, reflecting the company's ability to generate returns for both equity and debt holders invested in the business.
4. Return on equity (ROE):
- The ROE exhibited significant fluctuations over the years, reaching a peak of 57.56% in 2021 and dropping to -43.01% in 2019. In 2023, the ROE stood at 9.97%, indicating a lower return for the company's equity shareholders compared to previous years.
Overall, it is essential for stakeholders to monitor these profitability ratios closely to assess Mattel Inc's financial performance and identify any areas that may require attention to improve profitability and shareholder value.