Access the February 23, 2007, filing of the 2006 10-K report of the Hershey Foods Corporation (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, 2006, and December 31, 2005. Interpret its profitability using the results obtained for these two years.
1. Profit margin ratio.
2. Gross profit ratio.
3. Return on total assets. (Total assets in 2004 were $3,794,750,000.)
4. Return on common stockholders’ equity. (Total shareholders’ equity in 2004 was $1,137,103,000.)
5. Basic earnings per common share.