Mattel Inc (MAT)

Debt-to-equity ratio

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
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
Debt-to-equity ratio 1.08 1.14 1.19 1.20 1.13 1.18 1.34 1.44 1.64 1.96 5.38 5.78 4.68 6.80 26.87 15.85 5.60 6.16 6.70 5.45

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 fluctuations over the past few years. In recent quarters, the ratio has been relatively high, indicating a significant reliance on debt financing compared to equity. The ratio increased steadily from 1.08 in December 2023 to 1.20 in March 2023 before spiking to 5.38 in June 2021. This sudden increase in mid-2021 suggests a substantial increase in the company's debt levels relative to its equity, which may raise concerns about financial leverage and solvency.

Subsequently, there was a downward trend in the ratio, with fluctuations observed in the following quarters. The ratio reached its peak at 26.87 in June 2020, indicating a considerable imbalance between debt and equity. However, it declined significantly in the subsequent periods.

The fluctuations in the debt-to-equity ratio can be attributed to various factors such as changes in the company's borrowing activities, investments, profitability, and shareholder equity. A high debt-to-equity ratio may indicate that Mattel Inc is aggressively leveraging its operations, potentially increasing financial risk and interest obligations. Monitoring this ratio over time can provide insights into the company's capital structure and financial health.