Mattel Inc (MAT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 694,282 | 561,700 | 454,921 | 540,387 | 182,202 |
| Total assets | US$ in thousands | 6,544,080 | 6,435,820 | 6,177,700 | 6,393,900 | 5,521,100 |
| Operating ROA | 10.61% | 8.73% | 7.36% | 8.45% | 3.30% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $694,282K ÷ $6,544,080K
= 10.61%
Operating return on assets (Operating ROA) is a key financial metric that indicates a company's efficiency in generating operating income relative to its total assets. Analyzing the trend of Mattel Inc's Operating ROA from 2020 to 2024, we observe a positive growth trajectory.
In December 2020, Mattel's Operating ROA stood at 3.30%, representing the efficiency of the company in generating operating income from its assets. Over the next few years, there was a notable improvement in the company's performance. By December 2024, the Operating ROA had increased significantly to 10.61%.
The consistent increase in Operating ROA from 2020 to 2024 indicates that Mattel Inc was able to enhance its operational efficiency and utilization of assets to generate higher operating income. This improvement suggests effective management of resources and operational strategies, leading to increased profitability relative to the total assets employed.
The upward trend in Mattel's Operating ROA signifies a positive financial performance and operational effectiveness over the specified period. It reflects the company's ability to maximize returns on its assets, which is essential for sustainable growth and value creation for its stakeholders.