Mattel Vs Hasbro Essay

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Overall, between Mattel and Hasbro, Hasbro would be the better choice for an investment. This is evident from analyzing both companies’ financial statements. When comparing the cost of goods sold for each company in 2016, Hasbro has a higher cost of goods sold relative to its previous year, meaning that it had a higher sale of inventory to customers; the percentage of sale increase show that Hasbro had a better trend in selling its inventory meaning that it accumulated revenue at a better rate than Mattel. In 2016, Hasbro kept 10.6% of their total sales as net sales or profit which is a small increase from 10% in 2015. Mattel, however, has a drastic decrease with their percentage of net sales to total sales falling from 6.4% (which is already significantly lower than Hasbro’s) in 2015 to 5.8% in …show more content…

By looking at the return on equity Hasbro is more efficient with investors money as not only did they earn more per invested dollar each year, but their efficiency increased while Mattel’s declined. By looking at the return on assets, Hasbro utilizes its assets more effectively as not only did they earn more per dollar of assets each year, but Hasbro’s ratio increased from 2015 to 2016 while Mattel’s declined. Hasbro has a higher turnover ratio than Mattel and increased from 2015 to 2016 while Mattel’s dropped. Hasbro is more efficient and is gaining efficiency while Mattel is losing it. By comparing inventory turnover ratios, Mattel’s has decreased and their days increased which means they are losing efficiency with selling their inventory. Hasbro’s is increasing meaning they are gaining efficiency. For the cash coverage ratio, Hasbro increased while Mattel fell. This means that from 2015 to 2016 Hasbro made more in cash for every dollar of interest paid while Mattel earned less per dollar from their previous year. Hasbro would be the better investment

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