Taking it to the Net P3 BTN 17-5 Access the February 26, 2016, filing of the Dec

Question

Taking it to the Net  P3  

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 758Return 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

Profit Margin Ratio = Net Income/Net Sales

Gross Profit Ratio = (Total Sales - Cost of goods sold)/ Total Sales

Return On Stockholds equity = Net income/share holders equity

Return on total assets = EBIT/Net total assets

EBIT = Net income + interest expenses + Taxes.

For Calculating Net Income Per Share = Total Net Income/ no. of equity share holders

Full data not found to calculate the above ratios like share value, sales value, cogs etc

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