Mattel Inc (MAT)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.52 | 0.53 | 0.62 | 0.82 | 0.85 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,329,990K ÷ ($2,329,990K + $2,149,210K)
= 0.52
The debt-to-capital ratio of Mattel Inc has shown a decreasing trend over the past few years, declining from 0.85 in 2019 to 0.52 in 2023. This indicates that the company has been able to reduce its reliance on debt to finance its operations and investments. A lower debt-to-capital ratio generally signifies a healthier financial position and lower financial risk for the company.
The decrease in the debt-to-capital ratio may suggest that Mattel Inc has been managing its debt levels effectively, which could lead to lower interest expenses and improved profitability. It also implies that there is a higher proportion of equity funding in the company's capital structure compared to debt.
Overall, the declining trend in Mattel Inc's debt-to-capital ratio reflects positively on the company's financial stability and prudent debt management strategies.