Mattel Inc (MAT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,435,820 | 6,177,660 | 6,393,890 | 5,534,890 | 5,325,230 |
| Total stockholders’ equity | US$ in thousands | 2,149,210 | 2,056,270 | 1,568,850 | 610,144 | 508,564 |
| Financial leverage ratio | 2.99 | 3.00 | 4.08 | 9.07 | 10.47 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,435,820K ÷ $2,149,210K
= 2.99
The financial leverage ratio of Mattel Inc has shown a decline from 10.47 in 2019 to 2.99 in 2023. This indicates a decreasing trend in the ratio over the years, reflecting a reduction in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that Mattel's equity financing has been increasing relative to debt financing, which may lead to reduced financial risk and improved financial stability. Overall, the declining trend in the financial leverage ratio of Mattel Inc signals a more conservative capital structure and a potentially healthier financial position.