IV.

Marketability of product
Hasbro(2015) Hasbro(2016) Mattel (2016)
growth rate of sale 3.98% 12.87% -4.31%
gross profit margin 62.29% 62.04% 46.81%
net profit margin 10.05% 10.62% 5.83%

Sales of Hasbro have increased from 4447509 $ in 2015 to 5019822 $ in 2016 therefore the
Growth rate have increased significantly from 3.98% to 12.87% which is a big advantage to our
company. Moreover, our ratio is better than our competitor’s.
Gross profit margin has decreased from 62.29% to 62.04% from 2015 to 2016, in reality it has
decreased but it is still better than our competitor’s ratio (46.81%). Our decrease in gross profit
margin is because the increase in COGS is slightly higher than the increase in Revenues.
Net profit margin has increased by 5.71% which measures the profitability of the company and
our ratio is higher than Mattel which shows that we have lower risk to lose if sales drop and this
is really a good sign for Hasbro.
V. Profitability indicator
Hasbro(2015) Hasbro(2016) Mattel(2016)
ROA 9.47% 10.47% 4.90%
ROE 26.86% 28.62% 13.21%
ROS 26.65% 27.98% 5.83%
Cash return on assets 20.69% 25.19% 9.16%

a) First, the ROA is increasing from (9.47%) 2015 to (10.47%) 2016 by 10.56%. As we know that
the ROA ratio measures the company's profitability comparable to its total assets. Comparing
our ratio with Mattel (4.9%) we can notice that our company has a higher ratio which is a good
indicator that Hasbro is using its assets to make profit.
b) Second, the ROE ratio of Hasbro has improved by 6.55% (from 26.86% to 28.62%).
Shareholders prefer to have a higher ROE in order to make more profit since it measure the
return earned on every 1$ of equity. ROE of Hasbro has increase due to the increase of ROA to
10.47% while EM has decreased to 2.73 (lower financial leverage). Furthermore, the ratio of the
competitor is misleading it is high due to the EM (2.69) but yet less than Hasbro.
c) Third, ROS ratio indicates how a company will be able to generates profit from its top line
revenues. Hasbro between the two years of 2015 and 2016 has increased from 26.65% to
27.98% and comparing it with its competitors Mattel (5.83%) we conclude that our company
Hasbro has a better inner efficiency performance than Mattel.
d) Fourth, the cash return on asset ratio has increased in magnitude from 2015 to 2016 by
21.74% which is a good sign that the company is efficient in generating cash from its assets. and
it is still way better than its competitor Mattel (9.16%).