Analysis of Short-Term Liquidity and Long-Term Solvency
2. 1 Current Ratio
Table 1: Current Ratio of Mattel in 2010, 2011 and 2012($ thousands)
|Year |Current Ratio =Current Assets/Current Liabilities |
|2010 |$3,226,610/$1,350,282=2.39 |
|2011 |$3,443,707/$1,038,928=3.31 |
|2012 |$3,556,805/$1,716,012=2.07 |
Current ratios of Mattel. in 2010 and 2012 are both over 2.0, which is larger than the miscellaneous manufacturing company (1.64). This means in liquidity Mattel did better than average of manufacturing industry.
2.2 Quick Ratio
|Year |Cash+Marketable Securities+Accounts Receivalbe/ Current Liabilities |
|2010 |($1,281,123+$1,146,106)/$1,350,282=1.79 |
|2011 |($1,369,113+$1,246,687)/$1,038,928=2.52 |
|2012 |$3,556,805/$1,716,012=1.49 |
Table 2: Quick Ratio of Mattel in 2010, 2011 and 2012($ thousands)
Mattel’s quick ratios in this three year are all above 1.00, it shows Mattel have enough ability to pay short-term debt with the assets that can be converted into cash in a relatively short time.
2.3 Liability to Equity Ratio
|Year |Liability to Equity Ratio =Total Liabilities/Stockholder’s Equity |
|2010 |$2.789,149/$2,610,603=1.06 |
|2011
Table 1: Current Ratio of Mattel in 2010, 2011 and 2012($ thousands)
|Year |Current Ratio =Current Assets/Current Liabilities |
|2010 |$3,226,610/$1,350,282=2.39 |
|2011 |$3,443,707/$1,038,928=3.31 |
|2012 |$3,556,805/$1,716,012=2.07 |
Current ratios of Mattel. in 2010 and 2012 are both over 2.0, which is larger than the miscellaneous manufacturing company (1.64). This means in liquidity Mattel did better than average of manufacturing industry.
2.2 Quick Ratio
|Year |Cash+Marketable Securities+Accounts Receivalbe/ Current Liabilities |
|2010 |($1,281,123+$1,146,106)/$1,350,282=1.79 |
|2011 |($1,369,113+$1,246,687)/$1,038,928=2.52 |
|2012 |$3,556,805/$1,716,012=1.49 |
Table 2: Quick Ratio of Mattel in 2010, 2011 and 2012($ thousands)
Mattel’s quick ratios in this three year are all above 1.00, it shows Mattel have enough ability to pay short-term debt with the assets that can be converted into cash in a relatively short time.
2.3 Liability to Equity Ratio
|Year |Liability to Equity Ratio =Total Liabilities/Stockholder’s Equity |
|2010 |$2.789,149/$2,610,603=1.06 |
|2011