Calculating and Interpreting Risk Ratios.

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1) Calculate these ratios for Year 4.

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2) Assess the changes in the short-term liquidity risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4.

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3) Assess the changes in the long-term solvency risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4.

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Below are the required data:

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Exhibit 5.14 Risk Ratios for Hasbro (Problem 5.13) Current ratio Quick ratio Operating cash flow to current liabilities ratio Days accounts receivable outstanding Days inventory held Days accounts payable outstanding Net days of working capital financing needed Liabilities to assets ratio Liabilities to shareholders' equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Operating cash flow to total liabilities ratio Interest coverage ratio Year 4 Year 3 Year 2 1.6 1.5 1.2 1.1 0.479 0.548 68 73 51 68 47 49 72 91 0.556 0.621 1.251 1.639 0.328 0.418 0.489 0.720 0.245 0.238 5.6 2.3 Exhibit 5.14 Risk Ratios for Hasbro (Problem 5.13) Current ratio Quick ratio Operating cash flow to current liabilities ratio Days accounts receivable outstanding Days inventory held Days accounts payable outstanding Net days of working capital financing needed Liabilities to assets ratio Liabilities to shareholders' equity ratio Long-term debt to long-term capital ratio Long-term debt to shareholders' equity ratio Operating cash flow to total liabilities ratio Interest coverage ratio Year 4 Year 3 Year 2 1.6 1.5 1.2 1.1 0.479 0.548 68 73 51 68 47 49 72 91 0.556 0.621 1.251 1.639 0.328 0.418 0.489 0.720 0.245 0.238 5.6 2.3

Answer rating: 100% (QA)

To calculate and interpret the risk ratios for Hasbro for Year 4 we need the financial data for Year ... View the full answer