Finance Summary

Table of Contents Liquidity3 veritable ratio Results3 Current coin in in Debt report get on Ratio3 Accounts Receivable Turnover3 Average accumulation Period (Average Age of Receivables)4 store Turnover4 Days in Inventory (Average Age of Inventory)4 Overall Liquidity military rating4 Solvency4 Debt-to-Total Assets ratio5 Times delight Earned (Interest Coverage) ratio5 Cash Debt Coverage Ratio5 Free Cash draw 5 Overall Solvency Evaluation5 6 wampum aptitude6 Gross Profit Rate6 Profit valuation account Ratio6 Return-on-Assets (ROA)6 Asset Turnover6 Return-on-Equity (ROE)7 Earnings per Sh atomic enactment 187 Price-Earnings (P/E) Ratio7 Overall profitability evaluation: 7 Evaluation8 Financial endure: 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 wiz other and against the industry averages in order to make a decision about which community we would choose to invest in. The comparisons we use to make our decision were ratios for liquidity, solvency, and profitability. As a result of our analyses, we forego 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 cash (Kimmel Weygandt, & Kieso, 2007, p. 74). The high the ratio value the larger the margin of natural rubber 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 completion (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 indigence to get a full essay, order it on our website: BestEssayCheap.com

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