Mattel Inc (MAT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.89 | 2.99 | 3.00 | 4.08 | 9.26 |
Based on the provided data for Mattel Inc's solvency ratios, we can see that the company has consistently maintained a low level of debt relative to its assets, capital, and equity over the years 2020 to 2024, with a debt-to-assets, debt-to-capital, and debt-to-equity ratio of 0.00 for each year. This indicates that the company's reliance on debt to finance its operations and investments is minimal during this period.
Additionally, the financial leverage ratio has decreased steadily from 9.26 in 2020 to 2.89 in 2024. The financial leverage ratio measures the extent to which a company is using debt to finance its operations in relation to its equity. The downward trend in this ratio indicates that Mattel Inc has been reducing its financial risk by relying less on debt financing and improving its financial stability.
Overall, the solvency ratios suggest that Mattel Inc has maintained a strong financial position with low debt levels and decreasing financial leverage over the years, which may indicate a positive outlook for the company's long-term solvency and financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.24 | 4.54 | 4.80 | 2.85 | 1.92 |
Interest coverage is a financial ratio that measures a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates that the company is more capable of covering its interest obligations.
Analyzing the interest coverage of Mattel Inc from December 31, 2020, to December 31, 2024, shows a positive trend. In 2020, the interest coverage ratio was 1.92, indicating that the company's earnings were just enough to cover its interest expenses. However, the ratio improved steadily over the following years, reaching 6.24 by December 31, 2024.
The increase in the interest coverage ratio over the years demonstrates an enhancement in Mattel Inc's ability to meet its interest payments comfortably. This trend suggests that the company's earnings have been growing at a faster pace compared to its interest costs, indicating a positive financial performance and reduced risk of default on its debt obligations. Overall, the improving interest coverage ratio reflects a strengthening financial position for Mattel Inc during the period under consideration.