Mattel Inc (MAT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 741,279 | 561,700 | 637,153 | 724,701 | 379,812 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,264,120 | 2,149,210 | 2,056,300 | 1,568,800 | 596,300 |
| Return on total capital | 32.74% | 26.14% | 30.99% | 46.19% | 63.69% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $741,279K ÷ ($—K + $2,264,120K)
= 32.74%
Based on the data provided for Mattel Inc's return on total capital over the years, the company has shown a fluctuating trend in this key financial metric.
In December 2020, the return on total capital stood at a robust 63.69%, indicating that the company was efficiently generating income in relation to the total capital invested. However, there was a decrease in this ratio to 46.19% by December 2021, suggesting a potential decrease in the efficiency of capital utilization or a shift in the business landscape.
Subsequently, in December 2022, the return on total capital declined further to 30.99%, which could indicate potential challenges or changes within the company or industry affecting profitability and capital efficiency. This trend continued into December 2023, with the ratio dropping to 26.14%, potentially signaling ongoing struggles in optimizing capital resources.
However, there was a slight improvement in December 2024, with the return on total capital increasing to 32.74%. While this indicates some level of recovery or adjustments made by the company, it is essential for stakeholders to monitor future data to assess whether this represents a positive turnaround in capital utilization efficiency.
Overall, the fluctuating trend in Mattel Inc's return on total capital highlights the importance of closely monitoring financial performance and operational strategies to maintain and enhance capital efficiency and profitability levels over time.