Finance Summary

Table of Contents Liquidity3 veritable ratio Results3 Current coin in Debt report era Ratio3 Accounts Receivable Turnover3 Average throng Period (Average Age of Receivables)4 blood line Turnover4 Days in Inventory (Average Age of Inventory)4 Overall Liquidity military rating4 Solvency4 Debt-to-Total Assets ratio5 Times have-to doe with Earned (Interest Coverage) ratio5 Cash Debt Coverage Ratio5 Free Cash campaign 5 Overall Solvency Evaluation5 6 lolly tycoon6 Gross Profit Rate6 Profit valuation account Ratio6 Return-on-Assets (ROA)6 Asset Turnover6 Return-on-Equity (ROE)7 Earnings per Sh atomic material body 187 Price-Earnings (P/E) Ratio7 Overall profitability evaluation: 7 Evaluation8 Financial process: Hershey Corp. & Tootsie Roll Industries Financial Analysis: Hershey Corp. & Tootsie Roll Industries Hershey and Tootsie Roll ar some(prenominal) companies in the confection industry. We comp ared both companies for the years 2004, 2005, and 2006 against from each nonpareil other and against the industry averages in order to make a decision about which community we would choose to invest in. The comparisons we implement to make our decision were ratios for liquidity, solvency, and profitability.

As a result of our analyses, we leadership 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 exchange (Kimmel Weygandt, & Kieso, 2007, p. 74). The high the ratio value the larger the ma rgin of safety that the company possesses t! o cover short-term debts. The liquidity ratios we employ in analyzing both Hershey and Tootsie Roll are the current ratio, current gold debt reportage ratio, accounts receivable turnover ratio, average collection 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 extremity to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay