Hasbro Annual Report Analysis: Hasbro Term Paper

PAGES
3
WORDS
862
Cite

Certain accounts receivables may not be collected, affecting actual cash flow; inventories do not necessarily represent finished or saleable products; revenues do not include discounts given post-shipment; pension plans are accounted for in a confusing manner; net-earnings per share are weighted. Financial Performance

The total debt to equity ratio of the company is .92, making Hasbro highly liquid, and its profitability is also quite high -- the company currently boasts a gross margin of 60.20. Total assets for the company total over two billion ($2,764,894,000) even after long-term debt is subtracted, leaving the company a large amount of working capital, and the profit margin is currently 10.30. All of this shows the company to be in a very strong position in terms of its on-hand cash assets and its long-term resources, which would also help to cheapen credit for the company should future capital needs arise. The current ratio of 3.20 strengthens Hasbro's position in this regard still further, showing them to be an excellent credit risk and a high solvent and well-capitalized company poised for continued growth.

Hasbro's return on equity is a substantial 24.80, and inventory turnover is hovering just under 5 (4.9968, to be exact). The current return on assets ration is 10.20, again demonstrating the company's high profitability and substantial cash flow and...

...

Average daily sales for the company lie just over two million dollars, which again strengthens this company's stance as a cash-generating machine capable of significantly enlarging operations and expanding endeavors into other media still further should the market warrant such actions. With a debt to equity ratio of .92, the company is more than prepared to continue generating capital for its future growth, with little cause to worry over its relatively small long-term debt and other liabilities, all of which are dwarfed by the company's positive cash flow.
Conclusion

The current price to earnings ratio for Hasbro stock is 15.20, and the company consistently pays dividends to its investors with plans to increase dividend payments as revenues increase still further. New deals with other companies in the motion picture and video game industries will also help the company to generate still more cash in future years, making now an excellent time to purchase Hasbro stock. The fact that the company has remained so consistently strong despite the economic downturn is one sign that this company would make a solid investment; it's long-standing history in its chosen industry is also a sign of the company's strength. The new opportunities outlined herein make the company's position that much more ideal for investors looking to maximize growth…

Cite this Document:

"Hasbro Annual Report Analysis Hasbro" (2010, July 28) Retrieved April 23, 2024, from
https://www.paperdue.com/essay/hasbro-annual-report-analysis-hasbro-9395

"Hasbro Annual Report Analysis Hasbro" 28 July 2010. Web.23 April. 2024. <
https://www.paperdue.com/essay/hasbro-annual-report-analysis-hasbro-9395>

"Hasbro Annual Report Analysis Hasbro", 28 July 2010, Accessed.23 April. 2024,
https://www.paperdue.com/essay/hasbro-annual-report-analysis-hasbro-9395

Related Documents

It is worth noting that like many companies, Mattel has grown since its inception largely on the basis of population growth. Not to take anything away from Mattel's products, but the population of the world and its wealth have increased substantially since 1945. The company now stands to benefit from a surge in growth as the baby boom echo generation enters child-bearing age. This massive demographic will likely have

People and Talent Management The following work examines people and talent management and the importance that this has for today's organizations. The works reviewed in the study demonstrate the need for and the methods used in today's people and talent management. Reviewed is the work of Stockley (2011) as well as other various works that relate the processes and methods of people and talent management in today's organizations. Findings in this study

To succeed in a highly dynamic and competitive environment, business organizations must effectively execute their planning activities. They must judiciously formulate their long- and short-term goals and objectives. This ensures better anticipation of the ever uncertain future (Hill & Jones, 2013). Effective planning also ensures better utilization of organizational resources (Wittman & Reuter, 2008). With reference to Galaxy Toys, an American toy manufacturing company, this paper explores the planning process.