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Asset Management for Hershey

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Hershey Asset Management 2008 Tootsie Roll Asset Management 2008
Total Asset Turnover = Sales/Total Asset Total Asset Turnover = Sales/Total Asset
5,132,768 / 3,634,719 = 1.412 496,016 /812,092   = 0.611

Average Collection Period(ACP) Average Collection Period(ACP)
Account Receivable Turnover = Credit Sales/Account Receivable Account Receivable Turnover = Credit Sales/Account Receivable
Account Receivable Turnover = 5,132,768 / 526,056  = 9.757 Account Receivable Turnover = 496,016/34,196 = 14.505
APC = 365/ Account Receivable Turnover APC = 365/ Account Receivable Turnover
APC = 365/ 9.757 = 37.4 APC = 365/ 14.595 = 25.008

Hershey Asset Management 2009 Hershey Asset Management 2009
Total Asset Turnover = sales/Total Asset Total Asset Turnover = sales/Total Asset
5,298,668/3,675,031  = 1.441 499,331/838,247  = 0.596

Average Collection Period(ACP) Average Collection Period(ACP)
Account Receivable Turnover = Credit Sales/Account Receivable Account Receivable Turnover = Credit Sales/Account Receivable
Account Receivable Turnover = 5,298,668/ 450,258  = 11.768 Account Receivable Turnover = 499,331/47276 = 10.562
APC = 365/ Account Receivable Turnover APC = 365/ Account Receivable Turnover
APC = 365/ 11.768 = 31.01 APC = 365/ 10.562= 34.557

Comments ratio analysis should include ratios for the years 2008 and 2009 and also should include comparisons between Tootsie Roll and Hershey Foods.

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The expert examines asset management for Hershey Company.

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Hershey Liquid 2008:
current ratio = current assets/current liability = 1,344,945 /1270212 = 1.0588
Quick ratio = (Current assets - inventory)/Current liability = (1,344,945 - 592,530)/1270212 = 0.592
Hershey Liquid 2009:
current ratio = current assets/current liability = 1,385,434 / 910,628 = 1.521
Quick ratio = (Current assets - inventory)/Current liability = (1,385,434 - 519,712 )/ 910,628 = 0.951
Tootsie Roll Liquid 2008:
current ratio = current assets/current liability = 187,979 / 59,252 = 3.173
Quick ratio = (Current assets - inventory)/Current liability = (187979 - 55,584) / 59,252 = 2.234
Tootsie Roll Liquid 2009:
current ratio = current assets/current liability = 211878/56066 = 3.779
Quick ratio = (Current assets - inventory)/Current liability = (211878 - 56387)/56066 = 2.773

Hershey Asset Management 2008:
Total Asset Turnover = Sales/Total Asset = 5,132,768 / 3,634,719 = 1.412
Account Receivable Turnover = Credit Sales/Account Receivable = 5,132,768 / 526,056 = 9.757
ACP(Average Collection Period = 365/ Account Receivable Turnover = 365/ 9.757 = 37.4
Hershey Asset Management 2009:
Total Asset Turnover = sales/Total Asset = 5,298,668/3,675,031 = 1.441
Account Receivable Turnover = Credit Sales/Account Receivable = 5,298,668/ 450,258 = 11.768
ACP(Average Collection Period) = 365/ Account Receivable Turnover = 365/ 11.768 = 31.01

Tootsie Roll Asset Management 2008:
Total Asset Turnover = Sales/Total Asset = 496,016 /812,092 = 0.611
Account Receivable Turnover = Credit Sales/Account Receivable = 496,016/34,196 = 14.505
ACP(Average Collection Period = 365/ Account Receivable Turnover = 365/ 14.595 = 25.008
Tootsie Roll asset Management 2009:
Total Asset Turnover = Sales/Total Asset = 499,331/838,247 = 0.596
Account Receivable Turnover = Credit Sales/Account Receivable = 499,331/47276 = 10.562
ACP(Average Collection Period = 365/ Account Receivable Turnover = = 365/ 10.562= 34.557

Hershey debt ratio 2008:
Debt ratio = total debt/total asset = 3,316,520 /3,634,719 = 0.912
Times interest earned = EBIT/ Interest expense = 591700/99,678 = 5.936
Hershey Debt ratio 2009:
Debt Ratio = Total Debt/ Total Asset = 910,628/3,675,031 = 0.248
Times interest earned = EBIT/ Interest expense = 761.6/90.5 = 8.415
Tootsi Roll Debt ratio 2008:
Debt Ratio = Total Debt/ Total Asset = 177,322/812,092 = 0.218
Times interest earned = EBIT/ Interest = 5,6287/378 =148.907
Tootsie Roll Debt ratio 2009:
Debt Ratio = Total Debt/ Total Asset = 183,108 / 838,247 = 0.218
Times interest earned = =EBIT/ Interest = 64,179 / 243 = 264.1

Hershey Profitability 2008:
Net profit Margin = net income /sales = 311,405/5,132,768 = 0.061
Return on assets (ROA) = Net income /total assets = 311,405/3,634,719 = 0.086
Return on equity(ROE) = net income / equity = 311,405/318,199 = 0.979
Extended Du Pont equation
ROI = (net income/sales) * (sales/total assets) = 311,405/ 3,634,719 = 0.086
Return on assets * financial leverage = return on equity
ROE = (net income/total assets) * (total assets/equity) = 311,405/318,199 = 0.979
Hershey Profitability 2009:
Net profit Margin = net income / sales = 435,994/5,298,668 = 0.082
Return on assets (ROA) = Net income / total assets = 435,994/3,675,031 = 0.119
Return on equity (ROE) = net income / equity = 435,994/720,459 = 0.605
Extended Du Pont equation
ROI = (net income/sales) * (sales/total assets) = 435,994/3,675,031 = 0.119
Return on assets * financial leverage = return on equity
ROE = (net income/total assets) * (total assets/equity) = 435,994/720,459 = 0.605

Tootsi Roll Profitability 2008:
Net profit Margin = net income /sales = 38,777/496,016 = 0.078
Return on assets (ROA) = Net income /total assets = 38,777/812,092 = 0.048
Return on equity(ROE) = net income / equity = 38,777/634,770 = 0.061
Extended Du Pont equation
ROI = (net income/sales) * (sales/total assets) = 38,777/812,092 = 0.048
Return on assets * financial leverage = return on equity
ROE = (net income/total assets) * (total assets/equity) = 38,777/634,770 = 0.061
Tootsi Roll Profitability 2009:
Net profit Margin = net income / sales = 53,878/499,331 = 0.108
Return on assets (ROA) = Net income / total assets = 53,878/838247 = 0.064
Return on equity (ROE) = net income / equity = 53,878/655,139 = 0.082
Extended Du Pont equation
ROI = (net income/sales) * (sales/total assets) = 53,878/838247 = 0.064
Return on assets * financial leverage = return on equity
ROE = (net income/total assets) * (total assets/equity) = 53,878/655,139 = 0.082

Hershey Market value ratios 2008
Market Price of common stock at year-end 2008 = 34.74
2008 Earning per share = 1.36
PE(price/earning) = Market price per share/earning per share = 34.74/1.36 = 21.31
Book value per share = stockholder's equity/# of share outstanding = 318,199/227,035 =1.401
Market to book ratio = Market price per share/book value per share = 34.74/1.401= 24.8
Hershey Market value ratios 2009
Market Price of common stock at year-end 2009 = 35.79
2009 Earning per share = 1.90
PE(price/earning) = Market price per share/earning per share = 35.79/1.90 = 18.83
Book value per share = stockholder's equity/# of share outstanding = 720,459/227,998 = 3.156
Market to book ratio = Market price per share/book value per share = 35.79/3.156 = 11.340
Tootsie Roll Market value ratios 2008
Market Price of common stock at year-end 2008 = 24
2008 Earning per share = 0.68
PE(price/earning) = Market price per share/earning per share = 24/0.68 = 35.29
Book value per share = stockholder's equity/# of share outstanding = 634,770/56,799 = 11.17
Market to book ratio = Market price per share/book value per share = 24/11.17 = 2.05
Tootsie Roll Market value ratios 2009
Market Price of common stock at year-end 2009 = 23.5
2009 Earning per share =0 .95
PE(price/earning) = Market price per share/earning per share = 23.5/0.95 = 24.73
Book value per share = stockholder's equity/# of share outstanding = 652485/ 56072 = 11.64
Market to book ratio = Market price per share/book value per share = 23.5/11.64 = 2.02
Summary and Conclusion of Liquidity, Asset Management, Debt Management, Profitability, and Market value ratios. Also recommend which company is better to invest.

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