Mattel Inc (MAT)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 607,613 | 662,582 | 736,543 | 387,460 | 40,618 |
| Long-term debt | US$ in thousands | 2,329,990 | 2,325,640 | 2,570,990 | 2,854,660 | 2,846,750 |
| Total stockholders’ equity | US$ in thousands | 2,149,210 | 2,056,270 | 1,568,850 | 610,144 | 508,564 |
| Return on total capital | 13.57% | 15.12% | 17.79% | 11.18% | 1.21% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $607,613K ÷ ($2,329,990K + $2,149,210K)
= 13.57%
The return on total capital for Mattel Inc has shown fluctuations over the past five years. In 2019, the return was at a low of 1.21%, indicating a relatively low efficiency in generating returns from its total capital. However, there was a significant improvement in 2021 with a return of 17.79%, suggesting a more effective utilization of capital.
In 2022, the return slightly decreased to 15.12%, but still remained relatively strong. The most recent data for 2023 shows a further decline to 13.57%, indicating a slight decrease in efficiency in generating returns compared to the previous year.
Overall, the return on total capital for Mattel Inc has been above 10% in the past five years, indicating a generally positive performance in utilizing its total capital to generate returns. However, the fluctuations in the ratio suggest some variability in the company's efficiency in capital utilization over the years.