Mattel Inc (MAT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,149,210 | 2,056,270 | 1,568,850 | 610,144 | 508,564 |
| ROE | 9.97% | 19.16% | 57.56% | 20.25% | -43.01% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $214,352K ÷ $2,149,210K
= 9.97%
Mattel Inc's Return on Equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the ROE decreased to 9.97% from 19.16% in the previous year. This decline in ROE indicates a reduction in the company's profitability in generating returns for its shareholders relative to its equity.
The ROE was exceptionally high in 2021 at 57.56%, reflecting a strong performance and efficient utilization of shareholder equity to generate profits. This significant increase from the previous years signifies improved profitability and effective management of the company's resources.
In 2020, the ROE stood at 20.25%, indicating a moderate performance compared to the exceptional year of 2021. The positive ROE suggests that Mattel Inc was able to generate a profit with the money shareholders have invested in the company.
Notably, in 2019, Mattel Inc reported a negative ROE of -43.01%, suggesting that the company incurred a net loss resulting in negative returns for shareholders. This unfavorable performance could be attributed to various factors such as operational challenges, declining revenues, or increased expenses.
Overall, the fluctuations in Mattel Inc's ROE over the past five years highlight the importance of monitoring and assessing the company's profitability and efficiency in utilizing shareholder equity. Investors and analysts should delve deeper into the financial performance and operational aspects of the company to understand the factors influencing these variations in ROE.