Mattel Inc (MAT)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 214,353 | 83,172 | 226,735 | 265,988 | 393,913 | 603,609 | 1,108,803 | 1,036,826 | 902,987 | 806,206 | 322,468 | 216,896 | 123,579 | -5,298 | -246,040 | -242,918 | -213,512 | -204,048 | -268,366 | -398,342 |
| Total stockholders’ equity | US$ in thousands | 2,149,210 | 2,035,470 | 1,962,370 | 1,937,660 | 2,056,270 | 1,967,460 | 1,728,050 | 1,618,070 | 1,568,850 | 1,313,680 | 527,719 | 490,565 | 610,144 | 419,803 | 106,100 | 179,772 | 508,564 | 463,756 | 426,195 | 523,375 |
| ROE | 9.97% | 4.09% | 11.55% | 13.73% | 19.16% | 30.68% | 64.16% | 64.08% | 57.56% | 61.37% | 61.11% | 44.21% | 20.25% | -1.26% | -231.89% | -135.13% | -41.98% | -44.00% | -62.97% | -76.11% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $214,353K ÷ $2,149,210K
= 9.97%
The Return on Equity (ROE) of Mattel Inc has shown fluctuations over the periods presented in the table. ROE measures the profitability of a company by evaluating how effectively it is generating profit from shareholder equity.
From December 2019 to December 2023, Mattel's ROE has exhibited considerable variability. The ROE was negative in the first quarter of 2020 and the second quarter of 2020, indicating the company had a net loss and was not efficiently utilizing shareholder equity during those periods.
Subsequently, there was a significant improvement in ROE performance in the second quarter of 2020, with a sudden increase to 64.16%. This upward trend continued into the third quarter of 2020 and the fourth quarter of 2020, with ROE remaining above 20%. This period likely indicates improved profitability and more efficient use of shareholder equity.
However, the ROE started to decline from the first quarter of 2021 to the third quarter of 2022, though it remained positive. The ROE dropped to negative values again in the second and third quarters of 2022, indicating a decline in profitability and possibly an inefficient use of shareholder equity during these quarters.
From the fourth quarter of 2022 to the second quarter of 2023, there was a notable recovery in ROE, with values above 10%, indicating a rebound in profitability and more effective utilization of shareholder equity compared to the previous quarters.
In conclusion, Mattel's ROE has experienced fluctuations over the observed periods, with periods of strong profitability and efficient use of shareholder equity interspersed with periods of lower profitability and potential inefficiencies in capital utilization. It is essential for investors and stakeholders to monitor these trends closely to assess the company's financial health and performance over time.