Mattel Inc (MAT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 214,352 | 393,913 | 902,987 | 123,579 | -218,750 |
| Total assets | US$ in thousands | 6,435,820 | 6,177,660 | 6,393,890 | 5,534,890 | 5,325,230 |
| ROA | 3.33% | 6.38% | 14.12% | 2.23% | -4.11% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $214,352K ÷ $6,435,820K
= 3.33%
Mattel Inc's return on assets (ROA) has exhibited significant fluctuations over the past five years. In 2023, the ROA stood at 3.33%, showing a decrease from the previous year's figure of 6.38%. This decline suggests that the company's ability to generate profits from its assets weakened in 2023.
Comparing the 2023 ROA figure to the ROA in 2021, which was 14.12%, there has been a substantial decline over the two-year period, indicating a noteworthy deterioration in the company's asset utilization efficiency.
The negative ROA of -4.11% in 2019 was concerning, suggesting that Mattel Inc was not effectively utilizing its assets to generate profits at that time. However, the subsequent improvements in 2020 and 2021 demonstrate a positive trend before the recent decline in 2023.
Overall, the fluctuating ROA of Mattel Inc highlights the importance of closely monitoring the company's asset management strategies to ensure efficient utilization and profitability going forward.