Access the February 19, 2010, filing of the December 31, 2009, 10-K report of Th
ID: 2774026 • Letter: A
Question
Access the February 19, 2010, filing of the December 31, 2009, 10-K report of The Hershey Company (ticker HSY) at www.SEC.gov and complete the following requirements.
Required
Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2009, and December 31, 2008. Interpret its profitability using the results obtained for these two years.
Profit margin ratio.
Gross profit ratio.
Return on total assets. (Total assets at year-end 2007 were $4,247,113,000.)
Return on common stockholders’ equity. (Total shareholders’ equity at year-end 2007 was $592,922,000.)
Basic net income per common share.
Explanation / Answer
in $ Million December 31 2009 December 31 2008 Gross profit 2053.2 1757.7 Net income 436 311.4 Net sales 5298.7 5132.8 Total assets 4247.113 4247.113 Share holders equity 592.922 592.922 Profit margin ratio = Net income/ Net sales 8% 6% Gross profit ratio = Gross profit/ Net sales 39% 34% Return on total assets = Net income/Total assets 10% 7% Return on common stock holders equity = Net income/Stock holders equity 74% 53% Basic net income per common share 1.97 1.41