Finance Summary

Table of Contents Liquidity3 veritable ratio Results3 Current interchange in Debt report while Ratio3 Accounts Receivable Turnover3 Average host Period (Average Age of Receivables)4 stocktaking Turnover4 Days in Inventory (Average Age of Inventory)4 Overall Liquidity military rating4 Solvency4 Debt-to-Total Assets ratio5 Times amour Earned (Interest Coverage) ratio5 Cash Debt Coverage Ratio5 Free Cash finis of time 5 Overall Solvency Evaluation5 6 clams efficacy6 Gross Profit Rate6 Profit valuation account Ratio6 Return-on-Assets (ROA)6 Asset Turnover6 Return-on-Equity (ROE)7 Earnings per Sh atomic issuing 187 Price-Earnings (P/E) Ratio7 Overall profitability evaluation: 7 Evaluation8 Financial weather: 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 com pared both companies for the years 2004, 2005, and 2006 against from each matchless other and against the industry averages in order to make a decision about which community we would choose to invest in. The comparisons we hold to make our decision were ratios for liquidity, solvency, and profitability.

As a result of our analyses, we comport 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 hard change (Kimmel Weygandt, & Kieso, 2007, p. 74). The high the ratio value the larger the margi n of preventive 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 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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