Individual Case Analysis 1
Perform a Financial Ratio Analysis for Hershey Company
Purpose
Financial ratio analysisis one of the best techniques for identifying and evaluating internal strengths and weaknesses. Potential investors and current shareholders look closely at firms' ratios making detailed comparisons to industry averages and to previous periods of time. Financial ratio analyses provide vital input information for developing an IFE Matrix.
Instructions
Step 1
Using the resources listed in Table 4-10, find as many Hershey financialratios as possible. Record your sources. Report your sources. Report your research to your classmates and your professor.
Table 4-10 Excellent Websites to Obtain Information (Including Financial Ratios on Companies and Industries
1. Online Free Resources
a. http://finance.yahoo.com
b. www.hoovers.com
c. http://globaledge.msu.edu/industries
2. Online Subscription Resources (Likely to Your College Library)
a. MergentOnline: www.mergentonline.com
At theMergent Online website,search for companies with the same SICOR NAICS code,and then createa comparison financial ratio report. A number of different ratios
can be used as then create a comparison financial ratio report. A number of different ratios can be used as comparison critieria to create a tailored reportthat can then
be exported into a Microsoft Excel format. Alternatively, you can use Competitors Tab in Mergent tobuild a list of companies and compare their ratios. Your college
library subscribes to this service.
b. Factiva: http://new.downjones.com/products/factiva/
At the Factiva website, first use the Companies & Markets tabtosearch for a company. Next, click “Reports” and choose the “Ratio Comparison Report” to get a
company's ratios compared to industry averages. Your college librarylikely subscribes to this service.
c. S&P NetAdvantage: http://www.standardandpoors.com/products-services/indusrty_surveys/en/us
At the S&P NetAdvantage website,company and industry ratios are provided in two different section of the database: (1) the Compustat Ecel Analytics section of a
particular company's information page and (2) in the data from the S&P Industry Surveys. Your college library likely subscri9bes to this service.
d. Onesource: ww.avention.com/OneSource
Onesource is a good source for financial ratio information. Search for a particular company and then click on the link for “Ratio Comparisons” on the left side of the
company information page. The data in Onesource will compare your company against the industry, againstthe sector, and against the stock market as a whole.
e. Yahoo Industry Center: http://biz.yahoo.com/ic/
The Yahoo Industry Center is an excellent free resource that allos you to browse industries by performance rankings,including ROE,P/E ratio, market cap, price
change, profit margin, price-to-book value, long-term debt, and more.
3. Hardcopy Reference Books for Financial Ratios in Most Libraries
a. Robert Morris Associate's Annual Statement Studies: An excellent source of financial ratio information
b. Dun &Bradstreet's Industry Norms & Key Business Ratios: An excellent source of financial ratio information.
