Mattel Inc (MAT)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 741,277 | 712,898 | 712,896 | 692,644 | 609,414 | 510,614 | 407,132 | 472,593 | 667,069 | 873,469 | 871,431 | 794,777 | 746,508 | 639,748 | 624,462 | 516,697 | 327,700 | 282,328 | 67,267 | 67,392 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,264,120 | 2,312,950 | 1,973,130 | 2,025,310 | 2,149,210 | 2,035,500 | 1,962,400 | 1,937,700 | 2,056,300 | 1,967,500 | 1,728,000 | 1,618,100 | 1,568,800 | 1,331,200 | 527,700 | 473,900 | 596,300 | 404,500 | 86,100 | 157,900 |
| Return on total capital | 32.74% | 30.82% | 36.13% | 34.20% | 28.36% | 25.09% | 20.75% | 24.39% | 32.44% | 44.39% | 50.43% | 49.12% | 47.58% | 48.06% | 118.34% | 109.03% | 54.96% | 69.80% | 78.13% | 42.68% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $741,277K ÷ ($—K + $2,264,120K)
= 32.74%
Mattel Inc's return on total capital has shown fluctuations over the given time period from March 31, 2020, to December 31, 2024. The return on total capital started at a strong level of 42.68% in March 2020, increased significantly to 118.34% by June 2021, then gradually declined to 32.74% by December 2024.
The significant increase in return on total capital from March 2020 to June 2021 indicates the company's ability to generate income in relation to the total capital employed, reflecting positive operational performance.
However, the subsequent decline from June 2021 to December 2024 suggests a decrease in the efficiency of capital utilization or lower profitability relative to the capital invested. It is important for investors and stakeholders to monitor this metric to assess the company's long-term profitability and effectiveness in utilizing its capital resources.