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Comparative Analysis Problem: Tootsie Roll VS. Hershey Foods

Comparative Analysis Problem: Tootsie Roll VS. Hershey Foods

The financial stataments of Tootsie Rolls and Hershey Foods are attached. Hershey's average number of shares outstanding was 253,881,000 and Tootsie Rolls was 52,366,000.

Instructions:

(a) For each company calculate the following values:

(1) Working Capital (2) Current Ratio (3) Debt to total Asset Ratio
(4) Free Cash Flow (5) Earning Per Share.
( Hint: When calculating free cash flow, consider business acquisition to be part of capital expenditure.)

(b) Based on your findings above, discuss the relative liquidity, solvency and the profitability of the two companies.

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