Mattle and Hasbro PDF

Title Mattle and Hasbro
Author Janai Sinclair
Course Accounting For Decision Makers
Institution Nova Southeastern University
Pages 3
File Size 51 KB
File Type PDF
Total Downloads 46
Total Views 129

Summary

Mattel Inc. and Hasbro Inc. Competitor Analysis Report
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Description

Mattel Inc. and Hasbro Inc. Competitor Analysis Report

Mattel Inc. and Hasbro Inc.: Competitor Analysis Report Mattel Inc. an American multinational toy manufacturing company founded in 1945, and Hasbro Inc. an American worldwide toy, board game, and entertainment company founded in 1923 is the largest toy market in the world, especially in terms of stock market value. Also, the third largest with revenues equaling to approximately $5.12 billion. Both very different companies however similar when comparing ratios. In this financial analysis, I will share the differences between Mattel Inc. and Hasbro Inc. and compare both Mattel Inc. and Hasbro Inc. using ratio and company trends.

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Mattel Inc. and Hasbro Inc. Competitor Analysis Report

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To begin, the first difference between Mattel Inc. and Hasbro Inc. is the companies independent cash flow. Based on company research data, Mattel Inc. has produced a tremendous balance of negative ($188,075) which shows that the company has generated enough debt and is not producing enough money in order to peerage sufficiently. Compared to Mattel Inc., Hasbro Inc. has generated $668,778 in cash flow which shows that Hasbro has not only generated enough money to operate but has generated enough money in order to make investments. Another difference between Mattel Inc. and Hasbro Inc. is the generated net cash from operation. Mattel Inc. had a $27,317 balance in net cash compared to Hasbro Inc. who had a $645,997 balance in operating income. Based on the numbers, Mattel Inc. is operating, however they’re still losing money compared to Hasbro Inc. who’s producing from their sales and barely losing from the expenses they’ve occurred. Lastly, Hasbro has a 3.9 coverage ratio compared to Mattel Inc. who has a negative (1.3) coverage ratio. These ratio’s show that Hasbro Inc. has the ability to pay almost four times more on the interest that’s been accumulated by the Hasbro’s long-term debt. Unfortunately, based on Mattel’s ratio they will be unable to pay any interest in the debt they’ve accumulated.Hasbro Inc. has a greater financial leverage compared to Mattel Inc., as indicated by the ratio of liabilities to stockholders' equity. This means that a larger amount of the total assets of Hasbro is financed by debt rather than equity. A greater financial leverage translates into greater risk. Hasbro is taking a great rick than Mattel Inc. Although both Mattel Inc. and Hasbro Inc. share an extensive amount of differences, they both share a few common similarities. Mattel Inc. and Hasbro Inc. has accumulated a very immense amount of debt, both ratio’s ranging around 80% to 98%. In order for both companies to see a return in sales, there will have to completely pay off their debt. Secondly, Mattel Inc. and Hasbro Inc. assists surpass their liabilities. This is good for both incorporations because it shows

Mattel Inc. and Hasbro Inc. Competitor Analysis Report that they have the ability to pay off the short-term debts they’ve accumulated. Lastly, Mattel Inc. and Hasbro Inc. have an extensive stock turnover rate that can take 76-86 days. Because of their extensive rate, it takes longer for both Mattel & Hasbro to gain profit from their stock. To conclude, both Mattel Inc. and Hasbro Inc. are very different however, both very similar when it comes to both company’s ratio and trends.

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