Answer Happy

(1) Evaluate Mattel Incorporated on the Three Tests of a winning
strategy (Gamble, 2021, Chapter 1). Evaluate each of the three
tests as either Pass or No Pass. Explain your answer for each of
the three tests of a winning strategy.
(2) Classify Mattel Incorporated’s competitive strategy into one
(and only one) of the five generic competitive strategies (Gamble,
2021, Chapter 5). Explain your reasoning behind this analysis.
Then, discuss how Mattel executes this competitive strategy in the
marketplace of the Toy Industry.
(3) Conduct an analysis of Mattel’s financial statements as
contained in the case study in the textbook. Where is the company
strong and where is the company weak? What is your assessment of
the overall condition and strength of Mattel’s finances?
(4) What are three major strategic issues that Mattel’s top
management team need to address as of the end of the case study
(approximately early 2019). List and discuss three major strategic
issues faced by Mattel Incorporated.
MATTEL INCORPORATED FINANCIAL ANALYSIS FISCAL YEAR 2014-2018 $ US Numbers in Thousands, except EPS and where indicated 2014 2015 2016 2017 2018 INCOME STATEMENT Net Sales (actual) $5,456,650,000.00 $4,881,951,000.00 $4,510,852,000.00 $6,023,819,000.00 $6,023,819.00 Net Sales (in thousands) $5,702,613,000.00 $5,702,613.00 $5,703.00 $5,456,650.00 $4,881,951.00 $4,510,852.00 Net Sales (in millions) $6,024.00 $5,457.00 $4,882.00 $4,511.00 Net Sales CAGR 2014-2018 -6.98% Revenue 1 Year Growth Rate -5.33% -4.31% -10.53% -7.60% Total Cost of Sales $3,022,797.00 $2,896,255.00 $2,902,259.00 $3,061,122.00 $2,716,127.00 Gross Profit $3,001,022.00 $2,806,358.00 $2,554,391.00 $1,820,829.00 $1,794,725.00 Gross Margin 49.82% 49.21% 46.81% 37.30% 39.79% Operating Income $653,714.00 $540,922.00 $519,233.00 ($236,507.00) ($342,823.00) -7.02% Operating Margin 10.85% 9.49% 9.52% -5.24% Net Income (NI) $498,874.00 $369,416.00 $318,022.00 ($1,053,836.00) ($530,993.00) NI 1 Year Growth Rate -25.95% -13.91% -431.37% NMF 8.28% 6.48% 5.83% -21.59% -11.77% Return on Sales (ROS) Total Assets $6,722,046.00 $6,552,689.00 $6,493,794.00 $6,238,503.00 $5,243,465.00 Total Stockholder Equity $2,949,071.00 $2,633,254.00 $2,407,782.00 $1,257,455.00 $669,465.00 -10.13% Return on Assets (ROA) 7.42% 5.64% 4.90% -16.89% 16.92% 14.03% 13.21% -83.81% Return on Equity (ROE) Earnings per Share (EPS) -79.32% ($1.54) $1.45 $1.08 $0.92 ($3.07) 2014 2015 2016 2017 BALANCE SHEET Current Assets $3,185,951.00 $3,196,863.00 $2,940,064.00 $3,111,588.00 $2,352,440.00 Inventories $562,047.00 $587,521.00 $613,798.00 $600,704.00 $542,889.00 Current Liabilities $1,088,949.00 $1,645,572.00 $1,505,573.00 $1,623,803.00 $1,252,608.00 Current Ratio 2.93 1.94 1.95 1.92 1.88 Quick Ratio 2.41 1.59 1.55 1.55 1.44 Total Assets $6,722,046.00 $6,552,689.00 $6,493,794.00 $6,238,503.00 $5,243,465.00 Total Stockholder Equity $2,949,071.00 $2,633,254.00 $2,407,782.00 $1,257,455.00 $669,465.00 Total Debt $3,772,975.00 $3,919,435.00 $4,086,012.00 $4,981,048.00 $4,574,000.00 Long Term Debt $2,100,000.00 $1,800,000.00 $2,134,271.00 $2,873,119.00 $2,851,723.00 Debt to Asset Ratio (D/A) 56.13% 59.81% 62.92% 79.84% 87.23% Long Term Debt to Asset (LTD/A) 31.24% 27.47% 32.87% 46.05% 54.39% 127.94% 148.84% 169.70% 396.12% 683.23% Debt to Equity Ratio (D/E) Property & Equipment, Net $737,869.00 $741,147.00 $773,965.00 $785,285.00 $657,595.00 Fixed Asset Turnover (FAT) 8.16 7.69 7.05 6.22 6.86 0.90 0.87 0.84 0.78 0.86 Total Asset Turnover (TAT) Total Cost of Sales $3,022,797.00 $2,896,255.00 $2,716,127.00 Inventories $562,047.00 $587,521.00 $2,902,259.00 $613,798.00 4.73 $3,061,122.00 $600,704.00 5.10 $542,889.00 5.00 Inventory Turnover 5.38 4.93 2018