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Hasbro vs. Mattel According to their 2002 annual reports, Mattel did better during this year. Hasbro had seven unfavorable accounts whereas Mattel had only three. Also during 2002, Hasbro recorded a net loss instead of a net gain. That’s never good. The loss by Hasbro caused their profit margin to decrease by eight percent when Mattel’s only decreased by two percent. Hasbro claims that their net loss was mostly attributed to FAS 142 “Goodwill and Other Intangibles”. They claim that this is consistent with their long-term goals of reducing dependence on major entertainment licenses . Mattel, on the other hand, recorded an increase in sales while decreasing their costs. Although Mattel made an increase in sales they still recorded a smaller net income than last year, largely due to their cumulative effect of accounting changes. Both of the companies’ return on assets was unfavorable for this year.
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