AllFreePapers.com - All Free Papers and Essays for All Students
Search

Tootsie Roll Vs Hershey

Autor:   •  March 8, 2011  •  Essay  •  257 Words (2 Pages)  •  2,120 Views

Page 1 of 2

Earnings per Share $0.94 $0.96 Hershey has a higher earning per share which means it earns more per share. Their performance decreased from the previous year. The comparison of EPS across companies is not meaningful because of the wide variations in the numbers of shares of outstanding stock among companies.

Current Ratio 3.45 : 1 0.88 : 1 Tootsie roll has a higher current ratio than Hershey which means Tootsi roll is more liquid. Hershey cannot repay its current liabilities with current assets. Tootsie's curent liabilities arecovered by current assets 3.45 times. Therefore, I would purchase Tootsie.

Gross Profit Rate 33.2% 33.0% Tootsie has a higher gross profit rate which means that tootsie is more efficient in the production and distribution of its products than Hershey.

Profit Margin Ratio 10.4% 4.3% Tootsie makes 10.4 cents of profit for every dollar in sales. however, Hershey makes 4.3 cents of profit for every dollar in sales. I would purchase Tootshie.

Inventory Turnover Ratio 5.4 times 5.3 times tootsie's inventory turnover ratio is higher than Hershey's. this means that Tootsie sells its inventory faster than Hershey. Therefore, I would chose Tootsie.

Days in Inventory 67.6 days 68.8 days Hershey has a higher days in inventory which means that Hershey is not selling its total inventory as quickly as Tootsie. It could be a sign that Hershey can become less profitable. I would thus purchase Tootsie

formulas:

Tootsie Hershey

net income 51625 214154

total revenue 497717 4946716

current assets 199726 1426574

current liabilities 57972 1618770

cost of good solds 327695 3315147

average inventory 60679.5 624502.5

...

Download as:   txt (1.9 Kb)   pdf (53.1 Kb)   docx (10.5 Kb)  
Continue for 1 more page »