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Mattel – Making Working Capital Optimisation Kids’ Play

Mattel – Making Working Capital Optimisation Kids’ Play

by Elizabeth ‘Liz’ Minick, Head of U.S. Corporate Sales, Global Transaction Services, Bank of America Merrill Lynch and Rodney Gardner, Global Head of Receivables, Bank of America Merrill Lynch

Mattel, founded in 1945, is the largest global designer, manufacturer and marketer of toys with an iconic brand portfolio that includes Barbie®, Hot Wheels®, Fisher Price® and American Girls®. Like many global companies, Mattel is always seeking opportunities to improve its working capital efficiency. Its most recent move to better align the days sales outstanding (DSO) and days payable outstanding (DPO) is a world-class initiative.

This initiative was spurred by Mattel’s geographic shift in sales to new and developing international markets, which resulted in the DSO/DPO gap widening. “We recognised that the first step towards global cash optimisation is for the company to have a clear cash flow forecasting process and understand the implications of every business decision on its cash flow,” explains Mandana Sadigh, Mattel’s SVP and Corporate Treasurer, who works closely with Bank of America Merrill Lynch for transaction banking in North America and Asia.