Mattel Inc. Final Evaluation

History of Mattel:

Beginnings of Mattel:

  • Publically owned in 1960
  • Began trading on stock exchange in 1963
  • Was placed on Fortune 500 List in 1965
What is Mattel?
  • Began by selling picture frames
  • Name became well known with the Barbie doll creation in 1959
  • Famous for household toys such as Polly Pockets, American Girl, Hot Wheels, and Fisher Price Branded items
Compilation of Ratios

Liquidity:

  • Steady liquidity with ability to pay off debt obligations

Activity:

  • Decreasing inventory and asset turnovers
  • Steady average collection period
  • Every $1 of assets generates just less than $1 of revenue

Financial Leverage:

  • Rely slightly more on creditors than owners
  • 6 times more income than expenses
  • Comparable with that of competitors

Profitability:

  • Decreased profitability
  • Does not rely as heavily on equity to gain a profit
  • Ability to pay of operating costs

Market Value:

  • Generating less profit for shareholders
  • Share prices did not grow to that which investors had intended
Major Changes:
  • CEO change at the end of 2015
  • Disney Princess Doll acquisition transferred to Hasbro at between 2014 & 2015
Impact of Consumer Preferences
  • Household Name
  • Big Toy Industry Presence
  • Entertainment industry taking a turn towards electronics
  • Less children playing with physical toys in the future
Future Stability
  • Ratios have decreased over last three years, projected to keep increasing
  • Consumer preferences play a large roll in regards to future of Mattel
  • Mattel expects continued decreases in the future

Credits:

Created with images by 422737 - "seeds dandelion flower" • tanakawho - "Free to use texture/background" • TeroVesalainen - "question mark hand drawn solution" • PIRO4D - "cube play random" • Paul van de Loo - "Light changes perspective" • PixArc - "health glasses eye" • kevin dooley - "Future tense"

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