Analysing financial statements: analysis of Mattel and Hasbro

Résumé du document

For this analysis, I have decided to study the cases of Mattel and Hasbro. These two companies sell toys all over the world. After the computation of all figures and ratios, we have decided to study the companies on two different standpoints: Loubna will demonstrate which one of the two companies is more interesting for Investors whereas I am going to analyze which one of the two companies is more interesting for a bank.

With the analysis of the financial statements and the balance sheets over 5 years, we will try to make a choice between the Hasbro and Mattel. We will review the horizontal and vertical analysis, then we will study the trend analysis and to finish, we will examine the ratios.

Extraits

[...] You might want to invest in Mattel to get back the money you have invested rapidly. VI. 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. [...]

[...] Analysing financial statements: analysis of Mattel and Hasbro Table of contents Introduction I. Presentation of the companies Hasbro Mattel II. Vertical Analysis Hasbro Mattel III. Horizontal Analysis Hasbro Mattel IV. Trend Analysis Hasbro Mattel V. Ratio Analysis Liquidity and Efficiency Solvency Profitability Market Prospects VI. Analysis of Mattel and Hasbro as a bank Introduction For this analysis, I have decided to study the cases of Mattel and Hasbro. These two companies sell toys all over the world. After the computation of all figures and ratios, we have decided to study the companies on two different standpoints: Loubna will demonstrate which one of the two companies is more interesting for Investors whereas I am going to analyze which one of the two companies is more interesting for a bank. [...]

[...] This was the year where almost everything went down for Mattel. Comments : All assets are coming back to increase. Only Plant, Property and Equipment are decreasing. Notes Payables are going down whereas all the other Current Liabilities are going up. Mattel has doubled its Liabilities between 2005 and 2006. Comments : * Total Liabilities for 2005: the figure appears to be a mistake, it does not seem significant when compared to the rest of the figures. Only the Retained Earnings show a change during this period. [...]

[...] 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. 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. [...]

[...] It involves that the amount of current assets that can be turned rapidly into cash is higher than the amount of Current Liabilities. With a strong increase in Mattel's Current Liabilities, this quick Ratio did not have any other solution than decreasing. 0.53 point between 2005 and 2006) but the figures of and 2004 are consistent with the figure of 2006. Therefore we could say that 2005 has an unusual number. Concerning the Quick Ratio, Hasbro seems more interesting to me. The Account Receivable Ratio shows quite a low rate. [...]