Analysing financial statements: analysis of Mattel and Hasbro

Extract

[...] Analysis of Mattel and Hasbro as a bank On a bank standpoint, it is necessary to study the point and of the fifth part of this report. The two first ratios of the Profitability part can also be analyzed by a Bank. The other ratios are preferred in case of a study for an investor. According to the Liquidity and Efficiency ratios, we are going to see which company has more advantages for a Bank. Both companies have good figures concerning the Working Capital, however, we can see that Mattel's figures are really more consequent. [...]

[...] Horizontal Analysis Hasbro Income Statement 2002/2003 Operating expenses General expense operations income taxes Income tax expense 2003/2004 Operating expenses operations income taxes expense 2004/2005 Operating expenses operations income taxes expense 2005/2006 Operating expenses operations income taxes expense Balance Sheet 2002/2003 ASSETS Currents assets: net % equipment, net LIABILITIES Current Liabilities: % liabilities % STOCKHOLDERS' EQUITY 2003/2004 ASSETS Currents assets: net equipment, net LIABILITIES Current Liabilities: STOCKHOLDERS' EQUITY 2004/2005 ASSETS Currents assets: equipment, net LIABILITIES Current Liabilities: STOCKHOLDERS' EQUITY 2005/2006 ASSETS Currents assets: LIABILITIES Current Liabilities: STOCKHOLDERS' EQUITY equity Mattel Income Statement 2002/2003 Operating expenses operations taxes 2003/2004 Operating expenses % 2004/2005 Operating expenses operations taxes Income tax expense 2005/2006 Operating expenses Balance Sheet 2002/2003 ASSETS Currents assets: net equipment, net LIABILITIES Current Liabilities: STOCKHOLDERS' EQUITY 2003/2004 ASSETS Currents assets: LIABILITIES Current Liabilities: STOCKHOLDERS' EQUITY 2004/2005 ASSETS Currents assets: equipment, net LIABILITIES Current Liabilities: STOCKHOLDERS' EQUITY 2005/2006 ASSETS Currents assets: net equipment, net LIABILITIES Current Liabilities: % STOCKHOLDERS' EQUITY IV. [...]

[...] References Mattel Hasbro www.mattel.com www.habro.com Financial Data: Financial Data: Annual Report 2002 Annual Report 2002 Annual Report 2003 Annual Report 2003 Annual Report 2004 Annual Report 2004 Annual Report 2005 Annual Report 2005 Annual Report 2006 Annual Report 2006 Ratio Analysis Documents given in class: - 1c Financial Ratios Based on the Balance Sheet. - Summary of Key Financial Statement Ratio - Excellence in Financing Management, March 2000, by M.Evans Comments: Between 2003 and 2004 most of the figures have remained stable. [...]

[...] In case of dissolution of the company, you will get back $ 9.21 in 2006 with Hasbro and only $ 6.30 with Mattel. It is known that the most profitable investments are often the less secured. Income - Preferred per Share share share share share share Dividends/Weighted Common Shares Outstanding Basic Earnings per share show what are the possible earnings from a share during a specific period of time. For Mattel, the trend is variable and depending on the year you can get more or less than $ and 2002 have lower earnings per share. [...]

[...] The Quick Ratio of Mattel in 2006 is getting closer to the one of Hasbro during the whole period. We can imagine that it is the normal rate of the sector. turnover in year Receivable It is the average number of days necessary to collect the receivables. Between 2002 and 2006, this ratio has largely increased, aiming a 60.97 days length whereas it only represented 36.67 days in 2002. Compared to Hasbro's figures, there is nothing abnormal to point at days is a regular amount of time in businesses that are as big as these two toy makers. [...]