Question

Using the financial statements for the fiscal year 2015 you will analyze the performance of each toy company individually and also compare the performance of the two companies against each other. You will perform your analyses by answering the 13 questions on page 2.

Answers to the 13 questions must be provided on pages 3 and 4 and submitted by the due date. Show all calculations for your answers on an attachment to your answer sheets. No partial credit can be awarded without supporting calculations. A copy of both company’s Balance Sheet and Income Statement must also be attached to your answer sheet. Highlight or circle all figures on the statements that you use to answer the questions.

For each of the two companies, acquire their 10-K (annual) reports for fiscal year 2015 from the SEC website (www.sec.gov).

Click on the heading “Filings” - then click on “Company Filings Search,”

In the second box, under the heading “Fast Search,” enter the company’s Central Index Key (CIK) number from below. Then click on the “Search” button.

Click on the “Documents” button next to the 10-K for the filing date shown below.

Then click on the red file name for the FORM 10-K.

When the Annual Report appears, scroll down to the Table of Contents and click on “Item 8 - Financial Statements”.

Scroll down until you find the Balance Sheet and Income Statement.. Print only the pages with the 2 financial statements. I suggest you do this by first going to “Print Preview” and entering the page numbers you want. You may have to adjust the page numbers in “Print Preview” to get the 2 pages that actually contain the financial statements.

Repeat for the other company !!

Companies	CIK Number	10K Filing Date
Hasbro, Inc.	0000046080	02/24/2016
Mattel, Inc.	0000063276	02/25/2016

Solvency

7. Compute each company's Debt ratio for 2015 and 2014. Did the ratio improve or decline for each company? Who had the advantage?

Profitability

8. Compute each company's Net Margin for 2015 and 2014. Did the ratio improve or decline for each company? Who had the advantage?

9. Compute each company's Asset Turnover for only 2015. Which company had the advantage?

10. Compute each company's Return on Investment for 2015. Which company had the advantage?

11. Compute each company's Return on Equity for 2015. Which company had the advantage?

Conclusions

12. From your above analysis, which of the two companies would you prefer to lend money to if you were a bank officer? Briefly explain the basis for your decision giving specific reasons. Be concise! No need for an essay!

Which of the two companies would you prefer to invest your own money in as a stockholder? Briefly explain the basis for your decision giving specific reasons. Again - be concise!

	2015	2014
7a) Debt to Asset Ratio    -     MATTEL			Circle one:    Improved       Declined
7b) Debt to Asset Ratio    -     HASBRO	0.639 = 63.9%	0.666 = 66.6%	Circle one:    Improved       Declined
7c) Debt to Asset Ratio	Company that had the advantage –          Circle one:        MATTEL        HASBRO
8a) Net Margin   -     MATTEL			Circle one:    Improved       Declined
8b) Net Margin   -     HASBRO	0.101 = 10.1%		Circle one:    Improved       Declined
8c) Net Margin	Company that had the advantage –          Circle one:         MATTEL        HASBRO
9a) Asset Turnover - MATTEL		Company that had the advantage – Circle one:     MATTEL       HASBRO
9b) Asset Turnover - HASBRO	0.962 = 96.2%
10a) Return on Investment - MATTEL		Company that had the advantage – Circle one:     MATTEL       HASBRO
10b) Return on Investment - HASBRO	0.097 = 9.7%
11a) Return on Equity    -    MATTEL		Company that had the advantage – Circle one:     MATTEL       HASBRO
11b) Return on Equity    -    HASBRO

Name ____________________________________________                                 AC 210 Financial Statement Analysis Project      (continued)       

12)   Lend Money to which Company ?                    Circle one, both or none:          MATTEL          HASBRO             

         Brief Explanation:

13)   Invest Money in which Company ?                    Circle one, both or none:          MATTEL          HASBRO             

         Brief Explanation:

Answer 1

NOTE : DATA ABAILABLE IN SITE IS FOR 2016 AND 2017

7a. MATTEL

2017 2016

79.84% 62.92%

Debt ratio has improved

7b.  HASBRO : Debt ratio has declined.

7c. MATTEL : Debt to assets ratio is 50.06% for 2017

HASBRO : Debt to assets ratio is 34.97% for 2017

MATTEL has the advantage.

8a. MATTEL

2015 net profit margin was 6.48% DATA for 2014 is not available

8c.  HASBRO has the advantage.

9a. Asset Turnover - MATTEL is data for 2015 is not available

Calculate it as : Net Sales/average total assets

10a.

MATTEL is data for 2015 is not available

Calculate by using the formula

ROI = Net Profit / Total Investment * 100