project part 2 - The finanical ratio for Tootsie Roll...

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The finanical ratio for Tootsie Roll industries and The Hershey C Tootsie Roll industries The Hershey Company Receivable Turnover Ratio Average Collection Period 365/9.8=37.2 days Assets Turnover Ratio Debt to Total Assets Ratio $3,623,593/$4,247,113=85.3% Times Interest Earned Ratio 1. Receivable Turnover Ratio = Net Credit Sales / Average Net Receivable 2. Average Collection Period = 365 / receivable turnover Ratio 3. Assets Turnover Ratio = net sales / average total assets 5. Debt to Total Assets Ratio = total liabilities / total assets 6. Times Interest Earned Ratio = (net income + interest expense + tax expense) / interest expense Tootsie Roll industries The Hershey Company $492,742 / [($32,371+ $35,075)/2]= 14.6 times $4,946,716 / [($487,285+ $522,673)/2]=9.8 times 365/14.6= 25 days $492,742/[($812,725+ $791,639)/2]=0.6 times $4,946,716/[($4,247,113+ $4,157,565)/2]=1.2 times Return on Assets Ratio $51625/[($812,725+ $791,639)/2]=6.4% $214,154/[($4,247,113+ $4,157,565)/2]=5.1% ($57,972+$116,523)/
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This note was uploaded on 04/11/2011 for the course FIN 504 taught by Professor Joe during the Fall '10 term at Keller Graduate School of Management.

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project part 2 - The finanical ratio for Tootsie Roll...

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