Finance Summary

Table of Contents

Liquidity3

veritable ratio Results3

Current cash in Debt report age Ratio3

Accounts Receivable Turnover3
Average assemblage Period (Average Age of Receivables)4

Inventory Turnover4

Days in Inventory (Average Age of Inventory)4

Overall Liquidity military rating4

Solvency4

Debt-to-Total Assets ratio5

Times Interest Earned (Interest Coverage) ratio5

Cash Debt Coverage Ratio5

Free Cash Flow 5

Overall Solvency Evaluation5

6
Profitability6

Gross Profit Rate6

Profit valuation account Ratio6

Return-on-Assets (ROA)6

Asset Turnover6

Return-on-Equity (ROE)7

Earnings per Sh atomic number 187

Price-Earnings (P/E) Ratio7

Overall profitability evaluation: 7
Evaluation8

Financial digest: Hershey Corp. & Tootsie Roll Industries

Financial Analysis: Hershey Corp. & Tootsie Roll Industries
Hershey and Tootsie Roll are some(prenominal) companies in the confection industry. We compared both companies for the years 2004, 2005, and 2006 against from each one other and against the industry averages in order to make a decision about which community we would choose to invest in. The comparisons we utilise to make our decision were ratios for liquidity, solvency, and profitability.



As a result of our analyses, we lead chosen the Hershey Company.

Liquidity

Liquidity ratios measure short-term ability of the friendship to pay its maturing obligations and to meet unexpected needs for cash (Kimmel Weygandt, & Kieso, 2007, p. 74). The high the ratio value the larger the margin of safety that the company possesses to cover short-term debts. The liquidity ratios we employ in analyzing both Hershey and Tootsie Roll are the current ratio, current cash debt reportage ratio, accounts receivable turnover ratio, average collection period (average age of receivables), inventory turnover, and days in inventory (average age of inventory).

1
Current Ratio Results

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