Purchase Solution

Comparative Analysis Problem: Tootsie Roll VS. Hershey Foods

Not what you're looking for?

Ask Custom Question

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.

Attachments
Purchase this Solution
Solution provided by:
Sonia Agarwal, CA
Education
  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
Recent Feedback
  • "I got this feedback and I wanted to know if you can explain it to me. I noticed something within your workings which I believe is incorrect.  It looks like you've mistaken the Debt ratio for the Equity Multiplier.  You've done a calculation to determine Return on Equity (ROE) but if you take a look at the ratios provided for us you'll see ROE listed on the bottom line already.  You can use ROE, Profit Margin and Total Asset Turnover to figure out the Equity Multiplier amount.  Equity multiplier is not provided for us and we need to calculate it.  I really hope this is helpful to you.  "
  • "Very attentive to detail. Answers are designed in easy to understand format."
  • "Fast response and thorough answer"
  • "thank you very much! "
  • "thank you so much !!!!!!!"
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Introduction to Finance

This quiz test introductory finance topics.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

View More Free Quizzes
Related BrainMass Solutions

  • Ratio analysis for Tootsie Roll and Hershey Foods

    395132 liquid ratio Comments the ratio analysis should include ratios for the years 2008 and 2009. Also should include comparisons between Tootsie Roll and Hershey Foods.

  • Liquidity Solvency, and Profitability

    Based on the results of the comparative analysis tool, I would say Tootsie Roll is more profitable than Hershey.

  • Comparative Analysis: Hershey & Tootsie Financial Ratios

    This solution provides a comparative analysis for Hershey and Tootsie financial ratios.

  • Asset Management for Hershey

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

  • Tootsie Roll and Hershey - Financial Ratios

    186957 Tootsie Roll and Hershey: calculate and compare the financial ratios Using the financial statements for Tootsie Roll and Hershey located in Appendix A and B, respectively, you will calculate and compare the financial ratios listed below for the

  • Ratio analysis

    The solution explains the calculation and analysis of ratios for Hershey and Tootsie

  • Market value ratio

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

  • Summary/conclusion/recommendation the company financial

    = 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

  • Brand's product life cycle

    The brand name food product is Tootsie Roll, the Tootsie Roll was first made in 1896 and currently more that 60 million Tootsie Rolls are being produced.

View More Related Solutions