Prepare a four-column worksheet in Excel, with the left-most column (column 1) to write the ratio names, the second column from the left (column 2) to show the calculation of each ratio for Tootsie Roll Industries, the second column from the right (column 3) to show the calculation of each ratio for The Hershey Company, and the right-most column (column 4) to include your DETAILED comments about each ratio and what the ratio tells you about each company under study. Calculate each of the following six ratios.
Return on Common Stockholders' Equity Ratio
Free Cash Flow
Current Cash Debt Coverage ratio
Cash Debt Coverage ratio
Price/Earnings Ratio [For the purpose of this ratio, use the market price per share as of the last working day of the year 2007 for each company]
This solution provides a comparative analysis for Hershey and Tootsie financial ratios.