Mattel Inc (MAT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 561,659 | 675,515 | 729,562 | 374,736 | 37,102 |
| Total assets | US$ in thousands | 6,435,820 | 6,177,660 | 6,393,890 | 5,534,890 | 5,325,230 |
| Operating ROA | 8.73% | 10.93% | 11.41% | 6.77% | 0.70% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $561,659K ÷ $6,435,820K
= 8.73%
The operating return on assets (operating ROA) for Mattel Inc has displayed fluctuations over the past five years. In 2023, the operating ROA was 8.73%, showing a decrease compared to the previous year's 10.93%. However, it remains notably higher than the levels observed in 2020 and 2019, which were 6.77% and 0.70% respectively. The peak performance in the last five years was seen in 2021, with an operating ROA of 11.41%.
The downward trend from 2021 to 2023 may indicate potential challenges in effectively utilizing the company's assets to generate operating profits. Further analysis into the company's operational efficiency, asset management practices, and profitability drivers would be beneficial to understand the factors influencing these fluctuations in operating ROA.