Download the Financial Ratios Spreadsheet and complete the spreadsheet by filling in the financial statements (the ratios will calculate themselves). The instructions are provided on the template. You will submit the completed Financial Ratios Spreadsheet separately with this assignment, per the instructions below. Focus primarily on the issues developed in the Strategic Management text, Chapters 1 and 2, but respond to all questions asked in the Case Analysis Template in relation to The Hershey Company, drawing from the information provided on the company in the text and outside research.

Instructions: Fill in the cells with $ (yellow highlighted) and the ratios will automatically calculate
Financial Ratios Analysis	Current Year	Previous Year	Previous Year
Liquidity Ratios
Current Ratio: Current Assets/Current Liabilities	-	-	-	extent to which a firm can meet short-term obligations - generally one wants an upward trend
Quick Ratios: Current assets minus inventory/current liabilities	-	-	-	extent to which a firm can meet short-term obligations w/o selling inventory - generally one wants an upward trend
$ Current Assets
$ Current Liabilities
$ Inventory
Leverage Ratios
Debt-to-Total Assets Ratio: Total Debt/Total Assets	-	-	-	% of total funds provided by creditors - generally one wants a downward trend
Debt-to-Equity Ratios: Total Debt/Total Stockholders' Equity	-	-	-	% of total funds provided by creditors vs.. by owners - generally one wants a downward trend
Times-Interest-Earned Ratio: Profits before interest & taxes/Total Interest Charges	-	-	-	extent to which earnings can decline w/o firm being unable to pay interest - generally one wants and upward trend
$ Total Debt
$ Total Assets
$ Total Stockholders' Equity
$ Profits before Interest and taxes
$ Total Interest Expense
Activity Ratios
Inventory Turnover: Sales/Inventory of Finished Goods	-	-	-	whether firm holds extensive inventory and is selling it slower than industry - generally one wants and upward trend
Fixed Assets Turnover: Sales/Fixed Assets	-	-	-	Sales productivity and plan and equipment utilization - generally one want to see an upward trend
Total Assets Turnover: Sales/Total Assets	-	-	-	whether firm is generating sufficient vol. of business. for size of asset investment - generally one wants an upward trend
Average Collection Period: Accounts Receivable/(Total credit sales/365 days)	-	-	-	average time it takes for firm to collect on credit sales - generally one wants a downward trend
$ Sales
$ Inventory of Finished Goods
$ Fixed Assets
$ Total Assets
$ Accounts Receivable
$ Total Credit Sales (unless otherwise indicated, same as sales)
Profitability Ratios
Gross Profit Margin: Sales minus cost of good sold/Sales	-	-	-	total margin available to cover operating expenses and yield a profit - generally one wants an upward trend
Operating Profit Margin: Earnings before interest and taxes (EBIT)/Sales	-	-	-	profitability w/o concern for taxes and interest - generally one wants and upward trend
Net Profit Margin: Net Income/Sales	-	-	-	after-tax profits per dollar of sales - generally one wants an upward trend
Return on Total Assets (ROA): Net income/Total Assets	-	-	-	after-tax profits per dollar of assets (ROI) - generally one wants and upward trend
Return on Stockholders' Equity (ROE): Net Income/ Total Stockholders' Equity	-	-	-	after-tax profits per dollar of stockholders' investment in the firm - generally one wants and upward trend
Sales Revenue (already entered above - no need to re-enter data)	-	-	-
$ Cost of goods sold or cost of sales
$ EBIT (Earnings Before Interest and Taxes)
$ Net Income (Earnings After Interest and Taxes)
Total Assets (already entered above - no need to re-enter data)	-	-	-
Total Stockholders' Equity (already entered above - no need to re-enter)	-	-	-
$ Other Operating Expenses
Revenue/Expense
Sales Revenue (percentage change)	-	-	-	annual percentage growth rate in sales - generally one wants an upward trend
Cost of Sales (percentage change)	-	-	-	annual percentage growth rate in cost of sales - generally one wants a downward trend
Operating Profit (percentage change)	-	-	-	annual percentage growth rate in operating profit - generally one wants an upward trend
Net Income (percentage change)	-	-	-	annual percentage growth rate in net income - generally one wants an upward trend