Hasbro, Inc. is an American company that produces toys and board games and is the second largest toy manufacturer in the world. Their latest 10-K annual report is dated February 24, 2016, their latest 8-K report for undisclosed events is dated June 18, 2016, and their latest 10-Q quarterly report is dated June 26, 2016. The fiscal year end for this company is December 27, 2015. Reviewing Hasbro’s annual report tells us that their total current assets were 286.51 million and their total current liabilities were 1064.65 million therefore, making their current ratio 2.69 or 269%. Current ratio measures a company’s ability to pay back their short-term and long-term obligations. Hasbro’s ratio of 2.69 is a good indicator of their financial wellbeing …show more content…
The return on assets percentage measures how management has utilized the company’s assets to product a profit, and is an indicator of how profitable a company is relative to its total assets. According to Investopedia, “As a rule of thumb, investment professionals like to see a company’s ROA come in at no less than 5%” (Loth, 2007). Therefore, Hasbro’s return on assets percentage is good. Hasbro’s income statement and balance sheet indicate that their net income was 446.87 million and shareholder’s equity was 1663.90 million therefore their return of equity ratio is .269 or 27%. This ratio measures a company’s profitability by revealing how much profit a company generates with the money shareholders have invested. Hasbro’s ROE of 27% is considered superior according to Freedom Investments which states that “A return on equity of 17% or 18% is considered very good, 20% excellent, and 25% and above superior” (2016). Gross profit margin increased from 60.29% in 2014 to 62.29% in