INSTRUCTION - For two years, you've held your current role as a financial analyst in the research department of Excelsior Investments, a portfolio management firm. Still, your previous experience includes working in corporate accounting. As a financial analyst at Excelsior Investment, your role involves analyzing various public companies and recommending to the fund managers whether to buy, sell or hold the stock. You also conduct due diligence advisory research on these companies. One of your portfolio managers, Sally Yates, has a client considering investing in the toy industry. Sally plans to complete financial due diligence on Hasbro before recommending it to the client. She is considering. Sally has asked you to create an analysis focusing on a breakdown of the ROCE into its component parts over two years using the latest 10-K. In a memo to Sally, please complete the following: 1. Calculate the ROCE for Hasbro over two years. Break down the ROCE into its parts, as discussed in your reading. You should insert a line chart that shows the critical components of the ROCE. 2. Provide an overall analysis of the performance of Hasbro based on your calculations and the trend over time. MY POST - To: Sally Yates From: Ann CC: Research Team Date: September 7, 2024 Subject: Analysis of Hasbro Inc.'s Return on Capital Employed (ROCE) Dear Sally, As requested, I have conducted an analysis of Hasbro Inc.'s Return on Capital Employed (ROCE) for the years 2022 and 2023. This analysis breaks down the ROCE into its component parts and provides an overall assessment of Hasbro's financial performance. Formula: ROCE = (Net Operating Profit After Taxes (NOPAT) / Capital Employed) x 100 For 2023: NOPAT = -1,317.5 million Capital Employed = 4,484.5 million ROCE = (-1,317.5 / 4,484.5) x 100 = -29.38% For 2022: NOPAT = 349.2 million Capital Employed = 7,106.2 million ROCE = (349.2 / 7,106.2) x 100 = 4.91% The ROCE decrease from 4.91% in 2022 to -29.38% in 2023 signifies a substantial reduction in Hasbro's efficiency in using its capital to generate profits using its capital to generate profits, aligning with the principles outlined by Wahlen, Baginski, & Bradshaw (2023) regarding the critical nature of ROCE in evaluating a company's financial performance. Year Operating Profit/Loss Capital Employed ROCE % 2022 407.7 7,106.20 4.91 2023 -1,317.50 4,484.50 -29.38 I have completed the analysis of Hasbro Inc.'s Return on Capital Employed (ROCE) for the years 2022 and 2023, using data from their annual report (Hasbro, 2023). ROCE, a key profitability ratio, measures how efficiently a company uses its capital to generate profits. The ROCE for Hasbro has decreased significantly from 4.91% in 2022 to -29.38% in 2023. This decline indicates a decrease in the efficiency with which Hasbro is using its capital to generate profits. The primary reason for this decline is the substantial operating loss Hasbro experienced in 2023. This loss was driven by high impairment charges and losses on business disposals. These factors have negatively impacted on the company's ability to generate profits from its capital. Given these findings, potential investors should carefully evaluate Hasbro's financial performance and prospects. I recommend exercising caution when considering an investment in Hasbro. The company's recent financial performance indicates potential risks that could impact the return on investment. However, if Hasbro can address these challenges, there may be opportunities for improvement in the future. Please review this analysis and let me know if you have any questions or if there's anything else you'd like me to investigate. Best regards, Ann. WAIT FOR THE ONE YOU SAID IS CORRECTED. WAIT