Examine Mattels 2020 Annual report, which can be found on Mattels website (look under About Us, Corporate, and then Investors).
In the annual report refer to the Consolidated Balance sheets and answer the following questions:
Calculate Mattels current ratio at year-end 2020 and 2019? Compare the ratio for 2020 to 2019 and explain if this is an improvement or a worsening of liquidity. (show the calculations and then write a sentence or two)
Now calculate the debt to equity ratio for 2020 and 2019. Does the company have more or less leverage? (again show calculations then write a sentence or two)
Next look at the Consolidated Statement of Operations (the Income Statement)
What has happened to sales and net income over the last three years? (Write a few sentences and incorporate data, eg percentage increase or decrease in sales and net income)
Would you invest in Mattel stock? Why or why not? (This is your opinion and there is no right or wrong answer but you need to provide support for your decision.)