Ratio Analysis
Tootsie Roll vs The Hershey Co.
Tootsie Roll vs The Hershey Co.
Your next step in the Tootsie Roll case study is to analyze the company’s financial ratios vs. its largest competitor, Hersheys. Your analysis needs to include liquidity, asset management (activity), Debt management (leverage), profitability and market rat
Tootsie Roll Tootsie Roll Hershey Hershey
2010 2011 2010 2011
2010 2011 2010 2011
Current ratio 3.98 3.64 Current ratio 1.54 1.74
Quick ratio 3.01 2.41 Quick ratio 1.13 1.19
Inventory Turnover 6.19 5.10 Inventory Turnover 6.10 5.47
ACP 32.10 31.44 ACP 25.11 23.98
Debt to equity 28.6% 28.8% Debt to equity 3.6 4.1
Debt to assets 22.3% 22.4% Debt to assets 78.1% 80.2%
Times Int. Earned 0.0 0.0 Times Int. Earned -9.4 -11.4
Gross profit margin 32.8% 31.2% Gross profit margin 42.6% 41.6%
Net Profit margin 10.2% 8.3% Net Profit margin 9.0% 10.3%
ROA 6.2% 5.1% ROA 11.9% 14.3%
ROE 8.0% 6.6% ROE 54.4% 72.1%
Quick ratio 3.01 2.41 Quick ratio 1.13 1.19
Inventory Turnover 6.19 5.10 Inventory Turnover 6.10 5.47
ACP 32.10 31.44 ACP 25.11 23.98
Debt to equity 28.6% 28.8% Debt to equity 3.6 4.1
Debt to assets 22.3% 22.4% Debt to assets 78.1% 80.2%
Times Int. Earned 0.0 0.0 Times Int. Earned -9.4 -11.4
Gross profit margin 32.8% 31.2% Gross profit margin 42.6% 41.6%
Net Profit margin 10.2% 8.3% Net Profit margin 9.0% 10.3%
ROA 6.2% 5.1% ROA 11.9% 14.3%
ROE 8.0% 6.6% ROE 54.4% 72.1%
Current PE RatioFOR MORE INFORMATION ON THIS TOPIC CLICK HERE
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