Student Instructions: As you know, a company's return on investment (or ROI) is the product of its margin and turnover. Financial analysts often compute and analyze a company's ROI by obtaining the required data from its annual report. Unfortunately, the analyst is usually unable to precisely determine which of the company's assets are operating assets and which are nonoperating assets. Although this obstacle is a limitation, the information is still useful to some extent. Use the Hoovers Online site at www.hoovers.com to access financial information for the two companies listed below. (After entering the company name in the site search box at the top of the page and pressing enter, choose the company from the list generated. Then, click on the "Financials" tab and then on "Annual Financials" under the Free Financial Information heading.) Using data from the 2000 and 1999 annual reports of these two companies, compute the margin, turnover, and ROI for each for fiscal 2000 and 1999. Using these ratios briefly discuss each company's performance. - Hershey Foods Corporation
- Nestlé S.A.
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2002 McGraw-Hill Higher Education