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Hasbro Annual Report Analysis: Hasbro Term Paper

Certain accounts receivables may not be collected, affecting actual cash flow; inventories do not necessarily represent finished or saleable products; revenues do not include discounts given post-shipment; pension plans are accounted for in a confusing manner; net-earnings per share are weighted. Financial Performance

The total debt to equity ratio of the company is .92, making Hasbro highly liquid, and its profitability is also quite high -- the company currently boasts a gross margin of 60.20. Total assets for the company total over two billion ($2,764,894,000) even after long-term debt is subtracted, leaving the company a large amount of working capital, and the profit margin is currently 10.30. All of this shows the company to be in a very strong position in terms of its on-hand cash assets and its long-term resources, which would also help to cheapen credit for the company should future capital needs arise. The current ratio of 3.20 strengthens Hasbro's position in this regard still further, showing them to be an excellent credit risk and a high solvent and well-capitalized company poised for continued growth.

Hasbro's return on equity is a substantial 24.80, and inventory turnover is hovering just under 5 (4.9968, to be exact). The current return on assets ration is 10.20, again demonstrating the company's high profitability and substantial cash flow and...

Average daily sales for the company lie just over two million dollars, which again strengthens this company's stance as a cash-generating machine capable of significantly enlarging operations and expanding endeavors into other media still further should the market warrant such actions. With a debt to equity ratio of .92, the company is more than prepared to continue generating capital for its future growth, with little cause to worry over its relatively small long-term debt and other liabilities, all of which are dwarfed by the company's positive cash flow.
Conclusion

The current price to earnings ratio for Hasbro stock is 15.20, and the company consistently pays dividends to its investors with plans to increase dividend payments as revenues increase still further. New deals with other companies in the motion picture and video game industries will also help the company to generate still more cash in future years, making now an excellent time to purchase Hasbro stock. The fact that the company has remained so consistently strong despite the economic downturn is one sign that this company would make a solid investment; it's long-standing history in its chosen industry is also a sign of the company's strength. The new opportunities outlined herein make the company's position that much more ideal for investors looking to maximize growth…

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