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Mattel and Hasbro are the two biggest makers of games and toys in the world. Mattel sells over $4.5 billion of products each year
Mattel and Hasbro are the two biggest makers of games and toys in the world. Mattel sells over $4.5 billion of products each year while annual sales of Hasbro products exceed $4.6 billion. Compare the two companies as a potential investment based on the following ratios reported for twelve months ending in September 2019: Ratio a. Gross profit percentage b. Net profit margin c. Return on equity d. EPS. e. Receivables turnover ratio f. Inventory turnover ratio. g. Current ratio. h. Debt-to-assets Required: Mattel Hasbro 43.50% 60.90% (5.00) % 13.50% (45.90)% 15.00% $ (0.60) $ 2.07 5.00 4.60 4.00 3.50 1.60 2.33 0.92 0.67 1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable (NA) to comparing companies. 2. Which company appears more profitable? 3. Which company appears more liquid? 4. Which company appears more solvent? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable (NA) to comparing companies.
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