Mattel Inc (MAT)
Debt-to-equity 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-equity ratio | 1.08 | 1.13 | 1.64 | 4.68 | 5.60 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,329,990K ÷ $2,149,210K
= 1.08
The debt-to-equity ratio of Mattel Inc has shown a declining trend over the past five years. From a high of 5.60 in 2019, the ratio has decreased to 1.08 in 2023. This downward trend indicates that the company has been reducing its reliance on debt financing and increasing its equity financing relative to its capital structure.
A decreasing debt-to-equity ratio often signifies improved financial health and reduced financial risk, as it indicates that the company is less leveraged and has a stronger equity base to support its operations.
However, it is important to note that a debt-to-equity ratio of 1.08 in 2023 still indicates that the company has more debt than equity in its capital structure. It would be prudent to continue monitoring this ratio to ensure that the company maintains a balanced and sustainable capital structure in the future.