BTN 17-5 Access the February 26, 2016, filing of the December 31, 2015, 10-K rep
ID: 2542099 • Letter: B
Question
BTN 17-5 Access the February 26, 2016, filing of the December 31, 2015, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements.
Required
Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2015, and December 31, 2014. Interpret its profitability using the results obtained for these two years.
Profit margin ratio (round the percent to one decimal).
Gross profit ratio (round the percent to one decimal).
Page 758 Return on total assets (round the percent to one decimal). (Total assets at year-end 2013 were $5,349,724 in thousands.)
Return on common stockholders’ equity (round the percent to one decimal). (Total shareholders’ equity at year-end 2013 was $1,616,052 in thousands.)
Basic net income per common share (round to the nearest cent).
Explanation / Answer
2015 2014 Profit Margin ratio 6.9 11.4 % Net Income/sales *100 (512951/7386626*100 846912/7421768*100 Gross profit Margin 45.8 45.0 % Gross profit/sales*100 (7386626-4003951)/7386626*100 (7421768-4085062)/7421768*100 Return on Total assets 9.4 15.4 % Net Income/Avg total assets 512951/((5344371+5622870)/2)*100 846912/((5349724+5622870)/2)*100 Return on Common stock equity 40.0 54.0 % Net Income/Avg commom stock equity 512951/((1047462+1519530)/2)*100 846912/((1616052+1519530)/2)*100 Basic Net Income per common share Common stock $2.40 $3.91 Class B common stock $2.19 $3.54 The profitability has decreased in 2015 as compare to 2014 as the profit earned are less on the revenue in 2015
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