Over the past 5 years, Hasbro has maintained healthy profitability factors. As you can see from the snip that follows of the information provided in Appendix A- Financial Ratios, Hasbro’s Return on Sales is at 9.47%, its Return on assets is at 10.47%, and its Return of Common Equity is at 26.13%, which is the perfect ladder we have learned about throughout this course.
Growth
Hasbro has shown consistent growth over the past five year period reviewed. As the following table shows, Hasbro’s average revenue growth percentage is 5.37% and its average net profit margin is 9.10% over the last 5 years. This equate to a 15.29% average net income growth percentage over the last 5 years.
Risk Factors
As shown below, the average Altman Z-score over the 5 year period analyzed was 4.40, which equal a .06% probability of bankruptcy. The earnings manipulation score for Hasbro, is at -2.60, meaning that----------------
Liquidity
An analysis of Hasbro’s liquidity ratio (see the table that follows) shows that they are in good shape. Its current ratio has been an average of 2.33, meaning that they …show more content…
Hasbro has an average accounts receivable turnover rate of 3.9, and days receivables held of 94. This is not as good as it could be and is below the industry standard of 6.4, and 57 days reported by IbisWolrd.com. Hasbro’s inventory turnover average of 4.95, and days held of 74. Ibisworld reports that the industry had a inventory turnover of 3.1 in 2016 and 118 days inventory. The quicker that a company goes through its inventory the better, so Hasbro is in good shape. Hasbro’s accounts payable turnover is at 8.17, and 45.6 days held. This is not in sync with its AR turnover as it should be, and it is paying its bills slower than the industry average of 9.1and 40 days held. Hasbro is collecting its receivables slower than it is paying its
Growth
Hasbro has shown consistent growth over the past five year period reviewed. As the following table shows, Hasbro’s average revenue growth percentage is 5.37% and its average net profit margin is 9.10% over the last 5 years. This equate to a 15.29% average net income growth percentage over the last 5 years.
Risk Factors
As shown below, the average Altman Z-score over the 5 year period analyzed was 4.40, which equal a .06% probability of bankruptcy. The earnings manipulation score for Hasbro, is at -2.60, meaning that----------------
Liquidity
An analysis of Hasbro’s liquidity ratio (see the table that follows) shows that they are in good shape. Its current ratio has been an average of 2.33, meaning that they …show more content…
Hasbro has an average accounts receivable turnover rate of 3.9, and days receivables held of 94. This is not as good as it could be and is below the industry standard of 6.4, and 57 days reported by IbisWolrd.com. Hasbro’s inventory turnover average of 4.95, and days held of 74. Ibisworld reports that the industry had a inventory turnover of 3.1 in 2016 and 118 days inventory. The quicker that a company goes through its inventory the better, so Hasbro is in good shape. Hasbro’s accounts payable turnover is at 8.17, and 45.6 days held. This is not in sync with its AR turnover as it should be, and it is paying its bills slower than the industry average of 9.1and 40 days held. Hasbro is collecting its receivables slower than it is paying its