Mattel Inc (MAT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,435,820 | 6,244,550 | 5,897,840 | 5,831,740 | 6,177,660 | 6,468,180 | 6,167,730 | 6,147,370 | 6,393,890 | 6,263,040 | 5,241,060 | 5,118,950 | 5,534,890 | 5,613,490 | 4,998,700 | 4,804,350 | 5,325,230 | 5,527,580 | 5,046,630 | 5,082,370 |
| 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 |
| Financial leverage ratio | 2.99 | 3.07 | 3.01 | 3.01 | 3.00 | 3.29 | 3.57 | 3.80 | 4.08 | 4.77 | 9.93 | 10.43 | 9.07 | 13.37 | 47.11 | 26.72 | 10.47 | 11.92 | 11.84 | 9.71 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,435,820K ÷ $2,149,210K
= 2.99
The financial leverage ratio for Mattel Inc has shown fluctuations over the periods presented. The ratio measures the extent to which the company relies on debt to finance its assets. A higher financial leverage ratio indicates a greater reliance on debt financing, which can amplify returns in good times but also increase risks in challenging economic conditions.
Looking at the trend, the financial leverage ratio increased significantly from December 2019 to June 2020, reaching a peak of 47.11 in June 2020 before gradually declining. This spike suggests a substantial increase in debt relative to assets during that period.
Subsequently, the ratio generally decreased from June 2020 to September 2021, indicating a reduction in debt relative to assets during this period. However, from September 2021 to March 2022, there was a notable increase in the financial leverage ratio, peaking at 10.43 in December 2021, then decreasing and stabilizing around 3.00 to 3.07 from March 2023 onwards.
Overall, the financial leverage ratio for Mattel Inc has exhibited volatility, with periods of significant fluctuations in debt levels relative to assets. It is essential for the company to maintain a balance between debt and equity financing to ensure long-term financial stability and mitigate excessive risks associated with high leverage levels.