Mattel Inc (MAT)

Solvency ratios

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
Debt-to-assets ratio 0.36 0.37 0.39 0.40 0.38 0.36 0.38 0.38 0.40 0.41 0.54 0.55 0.52 0.51 0.57 0.59 0.53 0.52 0.57 0.56
Debt-to-capital ratio 0.52 0.53 0.54 0.55 0.53 0.54 0.57 0.59 0.62 0.66 0.84 0.85 0.82 0.87 0.96 0.94 0.85 0.86 0.87 0.85
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
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

Over the past few quarters, Mattel Inc's solvency ratios have shown some fluctuations. The debt-to-assets ratio has ranged from 0.36 to 0.59, indicating that the company has been effectively managing its debt levels in relation to its total assets. However, there has been a slight upward trend in this ratio over the quarters, which suggests a slight increase in financial risk.

The debt-to-capital ratio has also shown variability, with values ranging from 0.52 to 0.96. This ratio has been higher than the debt-to-assets ratio, indicating that a significant portion of the company's capital structure is financed through debt. The increasing trend in this ratio suggests a higher reliance on debt financing over time.

The debt-to-equity ratio has experienced significant fluctuations, ranging from 1.08 to 26.87. The substantial increase in this ratio in certain quarters, especially in the most recent ones, raises concerns about the company's ability to meet its financial obligations through equity financing alone. A higher debt-to-equity ratio indicates higher financial risk and potential challenges in servicing debt obligations.

Lastly, the financial leverage ratio, which reflects the company's level of financial risk, has shown a considerable variation from 2.99 to 47.11. The spikes in this ratio in some quarters indicate a higher level of financial leverage and potential vulnerability to economic downturns or changes in interest rates.

Overall, while Mattel Inc has managed to maintain acceptable levels of solvency ratios in some periods, the increasing trend in certain ratios, particularly the debt-to-equity ratio, is a cause for concern regarding the company's long-term financial health and ability to weather economic uncertainties.

Coverage ratios

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
Interest coverage 4.91 4.07 3.33 3.68 4.99 6.49 5.62 4.96 2.90 2.52 2.51 2.04 1.95 1.26 0.14 0.14 0.23 0.40 0.25 -0.47

The interest coverage ratio measures a company's ability to pay interest on its outstanding debt from its operating earnings. A higher interest coverage ratio indicates a better ability to cover interest expenses.

Looking at Mattel Inc's interest coverage ratio over the past few quarters, we observe fluctuations in the trend. The interest coverage ratio was relatively strong in the period from December 2022 to June 2023, ranging from 4.96 to 6.49, indicating a comfortable ability to meet interest obligations.

However, the interest coverage ratio declined significantly in the subsequent quarters, dropping to 0.14 in March 2020 and remaining low in subsequent periods. This decline suggests that Mattel Inc may have faced challenges in generating enough operating income to cover its interest payments during these quarters.

Overall, while the interest coverage ratio for Mattel Inc has shown variability, it is essential for investors and stakeholders to monitor the company's ability to generate sufficient earnings to cover its interest expenses consistently in the long term.