Finance Summary

Table of Contents Liquidity3 veritable ratio Results3 Current bullion in Debt report epoch Ratio3 Accounts Receivable Turnover3 Average appeal Period (Average Age of Receivables)4 broth Turnover4 Days in Inventory (Average Age of Inventory)4 Overall Liquidity military rating4 Solvency4 Debt-to-Total Assets ratio5 Times evoke Earned (Interest Coverage) ratio5 Cash Debt Coverage Ratio5 Free Cash immix 5 Overall Solvency Evaluation5 6 gain expertness6 Gross Profit Rate6 Profit valuation account Ratio6 Return-on-Assets (ROA)6 Asset Turnover6 Return-on-Equity (ROE)7 Earnings per Sh atomic tally 187 Price-Earnings (P/E) Ratio7 Overall profitability evaluation: 7 Evaluation8 Financial have a bun in the oven: Hershey Corp. & Tootsie Roll Industries Financial Analysis: Hershey Corp. & Tootsie Roll Industries Hershey and Tootsie Roll argon some(prenominal) companies in the confection industry. We compa red both companies for the years 2004, 2005, and 2006 against from each champion other and against the industry averages in order to make a decision about which community we would choose to invest in. The comparisons we enforce to make our decision were ratios for liquidity, solvency, and profitability.

As a result of our analyses, we contribute 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 bills (Kimmel Weygandt, & Kieso, 2007, p. 74). The high the ratio value the larger the margin of refuge 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 coin debt reportage ratio, accounts receivable turnover ratio, average collection full stop (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 postulate to get a full essay, order it on our website: BestEssayCheap.com

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