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Also needed to be included is to compare with charts, its competitor Pacifica and the references need to be done APA style. Hasbro Inc financial
Also needed to be included is to compare with charts, its competitor Pacifica and the references need to be done APA style.
Hasbro Inc financial analysis Introduction Hasbro Inc. is currently the second largest toy making company in the United States. The company manufactures and designs various lines of toy products and associated items throughout the world, including electronic, traditional board games and interactive puzzles, CD_ROM games, infant products and plush products. Hasbro also licenses a number of property rights, trade names for the use in connection for the sale to customers for noncompeting toys and nontoy products. Hasbro has a very nice balance sheet with total debt ratio of only 1.01. The ratio of Hasbro's price-to-earnings ratio in multiple to its five-year growth rate is slightly above the average of all stocks. The company's relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers. Furthermore, Hasbro, Inc. currently trades at a higher Price/Book ratio of 5.93 than its peer median with a Prince/Book ratio of 3.23. Hasbro has a long-standing loyalty in conducting business in a mood which abides by highest ethical and legal standards. Ethical behavior and Compliance are core values of the Company, and are built by regular communications from the other senior officials and Chief Executive Officer. Liquidity Liquidity Ratios 2015 2014 2013 2012 Current Ratio 2.53 1.82 2.61 2.39 Quick Ratio 2.21 1.56 2.28 2.04 Cash Ratio 0.83 0.50 0.88 0.68 3 2.61 2.5 2.53 2.28 2.21 2 2.04 1.82 Current Ratio Quick Ratio Cash Ratio 1.56 1.5 1 2.39 0.88 0.83 0.5 0 2015 0.68 0.5 2014 2013 2012 The current ratio of 2.53 indicates that the firm's has the ability to meet its liabilities or the claims. It shows that company's short-term assets (cash, cash equivalents, marketable securities, receivables and inventory) are readily available to pay off its short-term liabilities (notes payable, current portion of term debt, payables, accrued expenses and taxes) . The liquidity ratios which including the current ratio, quick ratio and the cash ratio of Hasbro is in a better position to meet the current claims. As the current ratio is showing more than one which indicates that the firm has more current assets than current liabilities. Hasbro has a very nice balance sheet with total debt ratio of only 1.02. The ratio of Hasbro's price-to-earning ratio in multiple to its five-year growth rate is slightly above the average of all stocks. The increasing trend over the years in the liquidity ratios (current ratio, quick ratio and cash ratio) indicates that the company is doing better year after year and the progress is significantly trending upwards. Debt and coverage Calculating average total liabilities for the year 2015: $4,818,008,000 (total liabilities start of 2015) + $4,713,259,000 (total liabilities end of 2014) 2 = $4,765,634,000 (Average total liabilities) Calculating the cash debt coverage ratio for the current reporting year 2015: $734,796,000 (2015 cash provided by operating activities) $4,765,634,000 (Average total liabilities) = 0.178 (Cash debt coverage ratio) In 2014 the cash debt coverage ratio for Hasbro Inc was 0.158; in 2013 the ratio was 0.145 whereas the cash debt coverage ratio for the year 2012 was 0.138. This indicates that Hasbro ended 2015 in a stronger cash position than in the previous years. This means that Hasbro Inc Company is in a better financial position to pay its long-term debt obligations Hasbro Inc's Operating Income for the year 2015 was $403,000,000. Its interest Expense was $24,000,000. Hasbro Inc's interest coverage for the year 2015 was 6.82. This higher ratio compared to the previous year indicates that the company's financial strength is stronger. Year 2015 2014 2013 2012 Interest Coverage 6.87 4.42 6.05 6.67 This indicates that Hasbro Inc Company is in a better financial position to easily pay interest expenses on outstanding debt. This Interest Coverage is a very vital factor when ranking a company's overage financial strength, which led to Hasbro Inc to be ranked overall second in performance. Sustainable growth Year Dividend Yield 2015 $0.98 3.30% 2014 $0.84 3.00% 2013 $0.72 2.50% 2012 $0.66 2.10% $3.50 $3.00 $3.30 $3.00 $2.50 $2.50 $2.10 $2.00 $1.50 $1.00 $0.98 $0.84 $0.50 $0.00 2015 2014 $0.72 2013 $0.66 2012 Dividend Yield Hasbro Inc indicated $117,000,000 in Revenue decline in 2012 but an increase of $48,000 in 2015. The company further indicated $23,000,000 increase in International, 18% Growth in Electronics/Licensing Games, a 5% growth in classic games as well as a 53% increase in other games. However, the company has indicated a slight decline of 3% in puzzles in 2015. The company has however showed a progressive increase in dividends over the recent years with 2015 recording the highest dividend per share of $0.98. This indicates that Hasbro Inc dividend per share has strengthened in the year 2015 in comparison to the other years. Conclusion Hasbro Inc Company appears to be well advancing in its financial status; the company has already pre-announced a good target for the first quarter outcome for of the year 2016. The company has healthy and safety operating environments with superior facilities and services. However, the Firm is too dependent on movies and entertainment categories only. The movierelated models add jeopardy to the portfolio and did not appear to present the outsized rewards they utilized to present. Therefore, Hasbro Inc ought to innovate and produce other distinct brands that are appropriate for ultimate licensing situations Content Production novelty and create new brands to the market. References Constance L. Hays, (2014). The Real Thing: Truth and Power at the Hasbro Inc Company. Random House. 358pp Mark Pendergrast, Journal (2015. 56pp). Companies Relationships and Status-Hasbro Inc: The Unauthorized History of the Great Companies That Makes It. Scribner's. Pat Watters, Journal (2015. 28pp). Hasbro Inc Financial Analysis: An Illustrated Historical Development of the Companies Progress. Doubleday. www.habroinc/Management's/Discussion/and/Analysis/of/Financial/Condition/and/Results/of/O perations/and/is/incorporatedStep by Step Solution
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