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# Summary/conclusion/recommendation the company financial

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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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Summary and Conclusion - Profitability

Tootsie's Net margin and return on equity is better than Hershey in 2009. Hershey's Return on Assets ratio is better. This means that Tootsie is more efficiency in terms of profitability than Hershey.
Asset and Management Ratios
Hershey's Asset management ...

#### Solution Summary

The solution explains summary/conclusion/recommendation the company financial.

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