THIS IS MATTEL - To calculate the ROCE we need to take the net income available to the common shareholder which is 214.4 in 2023 and divide that by average common shareholders' equity of 2.103B. This shows us that the current ROCE for 2023 is 10.2%. Below is the last five years of financial data to calculate ROCE. Date Net Income Equity ROCE 2019-12-31 -218.8 M 579.3 M 37.8% 2020-12-31 123.6 M 550.9 M 22.4% 2021-12-31 903 M 1.089 B 82.9% 2022-12-31 393.9 M 1.813 B 21.7% 2023-12-31 214.4 M 2.103 B 10.2% To better understand the position of the alternative investment we need to look at all the financials in order to determine if the performance is a suitable investment. Looking at the current ratio we see that Mattel has a current Ratio of 2.6X which means that they have enough assets to pay its bills over the next twelve months. This is a positive when assessing risk of investment. Another aspect to consider is total debt the company carries. When compared to Hasbro we see that Mattel carries less debt. Mattel has 2.6 billion in debt while Hasbro is major competitor carries over 3.9 billion. This indicates that Mattel is less of a risk than Hasbro due to having less risk. Net Income Changes in net income show that the company sold less in 2023 versus 2022. Their cost of goods value went down meaning they were able to make products at a cheaper price but failed to sell as many items as the previous year. Where we really need to focus is on the balance sheet. Balance Sheet In the assets column the company has moved to become more liquid. They have reduced inventory and saw a large increase in cash on hand which produces a smaller risk than during 2022. There was minimal change to non-current assets showing a steady operation tactic. Their liabilities have also remained the same over the two years. The positive aspect of the balance sheet is that even though their net income decreased between the two years we see that stockholder's equity continued to increase showing a dedication to providing value to the stockholder. Overall the income statement and balance sheet show that the company has maintained sales, reduced cost of goods to counteract the increased cost of operation and continue to increase stockholder's equity year after year. This is a steady state performer in the financial market and would be a safe place to invest. Looking at the financial statements I would not expect erratic performance of this company but steady growth in 2024 and beyond