Mattel Inc (MAT)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 741,279 | 561,700 | 637,153 | 724,701 | 379,812 |
| Interest expense | US$ in thousands | 118,774 | 123,800 | 132,800 | 253,900 | 198,300 |
| Interest coverage | 6.24 | 4.54 | 4.80 | 2.85 | 1.92 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $741,279K ÷ $118,774K
= 6.24
The interest coverage ratio for Mattel Inc has shown a positive trend over the past five years. In December 31, 2020, the ratio was at 1.92, indicating that Mattel's operating income was able to cover its interest expenses 1.92 times.
By December 31, 2021, the interest coverage ratio improved to 2.85, reflecting a stronger ability to meet interest obligations. This trend continued in 2022, with the ratio reaching 4.80, suggesting a significant enhancement in the company's capacity to cover its interest expenses as compared to the previous years.
In 2023, the interest coverage ratio slightly decreased to 4.54, but remained at a healthy level, indicating Mattel's ability to comfortably meet its interest payments. By the end of 2024, the ratio further improved to 6.24, demonstrating a robust financial position and a strong ability to service its debt obligations.
Overall, the increasing trend in the interest coverage ratio over the years indicates improved financial stability and debt-servicing capacity for Mattel Inc, reflecting positively on the company's ability to manage its interest expenses effectively.