Exercise 4C

Perform a Financial Ratio Analysis for Hershey Company

Purpose

Financial ratio analysis is one of the best techniques of identifying and evaluating internal streghthes and weaknesses. Potential investors and current shareholders look closely at firms financial rations, making detailed comparisons to industry averages and to previous periods of time. Financial ration analyses provide vital input information for developing an IFE Matrix.

Step 1

Using the resources listed in Table 4-10, find as many Hershey financial ratios as possible. Record your sources. Report your research to your professor.

Noth America 563527 55,812.7 2,346 1 Sorce ised on Hershey's 2014 orm 10K. p 2s i crusad atoxm3 percent ?'ven.11 from the pria' y:'ar The company's " nsarly ?? pest it includin Ihe negat e impakt ar reen cursu yexchange ratrs and portive centi net sales mcreaoed Rershey lhas gained markn lure in every measured sansel three years running, even after riaising crces in mxony items 10 percent over the soue period. Ia tact. Her-hey hice produced higter zarnng evey year prioss The cotmpsiny's mst reerl income stxements ard balance sheets are provided in Fshilsas and 4. respesctively Note ic sleauy incrases in beth revenues and net inesue EXHIBIT 3 Hershey's Income Statements (in thousands, except per share amounts) 2013 Costs azd expenses Cust of saks Seling, marketing, and auinistrative Ausiness realignment and impsirmend Total costs and expenses Income before interest and taxes Inicrest espense 1.389,575 Income before taxes 1.306,043 430,849 35464 459,131 Income taxes Net Income Net incume per sharc Dividends paid per share L.RL Based oni s 2014 form 10K, p. 45