Phase 2 project

Phase 2 project - 214154-Net Inc+126450-Int Exp+253977-Tax...

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Ratio Tootsie Roll Receivable Turnover Ratio 14 Average Collection Period 26.1 Assets Turnover Ratio 0.61 Return on Assets Ratio 6.40% Debts to Total Assets Ratio 15% Times Interest Earned Ratio 118.26
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Formula Hershey 492,742-Net Credit Sales / 35,284 Avg Net Rcbls 10.2 365-days year / 14-rcble turn ratio 35.8 492,742-Net Sales / 812,725-Avg Tot Assets 1.17 51,625-Net Income / 812,725-Avg Tot Assets 5.80% 122,495-Tot Liab / 812,725-Tot Assets 85% 51625-Net Inc+537-Int Exp+11343-Tax Exp / 537-Int Exp 4.7
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Formula 4,946,716-Net Credit Sales / 487,285-Avg Net Rcvbles 365-days year / 10.2-rcble turn ratio 4,946,716-Net Sales / 4,247,113-Avg Tot Assets 214,154-Net Income / 4,247,113-Avg Tot Assets 3,623,593-Tot Liab / 4,247,113-Tot Assets
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Unformatted text preview: 214154-Net Inc+126450-Int Exp+253977-Tax Exp / 126450-Int Exp Comments It seems Tootsie collects more during a given period than Hershey on r c Tootsie collects much faster on rcbles than does Hershey-volume cou d Hershey most definitely gets the bang for their buck as 1.17 return on each dollar i n For each dollar invested in assets Tootsie is a better return but seems low compared to b Hershey would have to liquadate 85% of its assets to satisfy debt as Tootsie a clear favorite here only at 1 5 Tootsie is 118 times greater than the need to pay interest expense and Hershey only at 4.7 time s...
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This note was uploaded on 11/15/2010 for the course FI FI504 taught by Professor Seegmiller during the Winter '10 term at DeVry Denver.

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Phase 2 project - 214154-Net Inc+126450-Int Exp+253977-Tax...

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