Module 1 SLP Essay Example | Topics and Well Written Essays - 500 words

Module 1 SLP - Essay Example The nominal value of the company’s shares is $ 0.001 but with the immense growth displayed the company over decades the company’s share price has grown significantly and it is presently $97.06 (as of June 2, 2014) Following is the trend of the share price observed on the day of recording the company’s share price. Above figures prove that the company has been growing each year. Hershey has not just improved its figures but it has excelled in its operational efficiency as well; in 2010, the ratio of income to sales was 8.9% against 2013 when the ratio value was 11.50%. Price/Book ratio indicates high anticipations by the market related to the company performance. The high return on assets of 16.68% is accompanies by high return on equity of 59.75%. Theses return ratios indicate that the company has successfully executed the strategy of gaining high returns. This makes it more attractive for public offering because high returns are more attractive for investors. Such high return rates are supported by underlying efficient operating and profit ratios of 19.06% and 11.56%. The difference between operating and profit indicates that company has fewer overhead/administrative costs, which are only because of its cost minimization techniques. As per Hershey’s annual report, the company is simultaneously investing in more than five countries on research and development for the betterment of its production processes so that the quality and costs could be improved. In addition to this, the company has decent market share despite huge competitors in th e market. As discussed above, Hershey is an advancing company, which is sustaining against tough competition in the market. In spite of the growth over the period of the years, it has still not become the market leader. It only has market capitalization of 21%. If more funds are injected into the company, Hershey will definitely gain more