Mattel Inc (MAT)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	607,514	510,797	428,214	481,836	662,582	862,511	849,143	776,543	736,537	679,155	672,624	570,679	387,452	262,774	28,606	27,710	45,897	76,871	47,920	-89,087
Long-term debt	US$ in thousands	2,329,990	2,328,900	2,327,810	2,326,730	2,325,640	2,324,460	2,323,300	2,322,150	2,570,990	2,569,840	2,839,120	2,837,730	2,854,660	2,852,750	2,850,840	2,848,920	2,846,750	2,856,770	2,855,190	2,853,450
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
Return on total capital		13.56%	11.70%	9.98%	11.30%	15.12%	20.10%	20.96%	19.71%	17.79%	17.49%	19.98%	17.15%	11.18%	8.03%	0.97%	0.91%	1.37%	2.32%	1.46%	-2.64%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $607,514K ÷ ($2,329,990K + $2,149,210K)
= 13.56%

The return on total capital for Mattel Inc has shown fluctuations over the past several quarters. It ranged from a low of -2.64% in the first quarter of 2020 to a high of 20.96% in the second quarter of 2022. The return on total capital gradually declined from the peak in the second quarter of 2022 to 13.56% in the fourth quarter of 2023.

Overall, the return on total capital has exhibited some volatility, with occasional sharp increases and decreases. It is important for investors and stakeholders to monitor this metric closely as it indicates how effectively the company is generating profits from the capital invested in the business.