Finance Summary

Table of Contents Liquidity3 veritable ratio Results3 Current hard currency in Debt report term Ratio3 Accounts Receivable Turnover3 Average ingathering Period (Average Age of Receivables)4 account Turnover4 Days in Inventory (Average Age of Inventory)4 Overall Liquidity military rating4 Solvency4 Debt-to-Total Assets ratio5 Times involvement Earned (Interest Coverage) ratio5 Cash Debt Coverage Ratio5 Free Cash die hard 5 Overall Solvency Evaluation5 6 take in magnate6 Gross Profit Rate6 Profit valuation account Ratio6 Return-on-Assets (ROA)6 Asset Turnover6 Return-on-Equity (ROE)7 Earnings per Sh atomic issuance 187 Price-Earnings (P/E) Ratio7 Overall profitability evaluation: 7 Evaluation8 Financial stand up: 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 single other and against the industry averages in order to make a decision about which community we would choose to invest in. The comparisons we expend to make our decision were ratios for liquidity, solvency, and profitability.

As a result of our analyses, we hold 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 gold (Kimmel Weygandt, & Kieso, 2007, p. 74). The high the ratio value the larger the margin of safe tha t 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 exchange debt reportage ratio, accounts receivable turnover ratio, average collection decimal point (average age of receivables), inventory turnover, and days in inventory (average age of inventory). 1 Current Ratio Results Current ratio is a measure used to evaluate a companys liquidity and...If you wish to get a full essay, order it on our website: OrderCustomPaper.com

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