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3.Finance+Hersheys+Tootsie+Roll - Tootsie Roll Industries...

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Tootsie Roll Industries Ratios The Hershey Company Ratio Interpretation and comparison between the two companies' ratios Payout Ratio 1752/51625 = 0.34 252263/214254 = 1.18 It measures the relationship between the earnings belonging to the ordinary shareholders and the dividend paid to them. The comparison shows that the Hershey company has good payout ratio as compare to the Tootsie, because Hershey pays more than earning and Tootsie has retained big portion of earnings per share. Return on Common Stockholders' Equity Ratio 15625/54980 = 0.94 214154/60806 = 3.25 This is probably the single most important ratio to judge whether the firm has earned a satisfactory return for its equity-holders or not. The comparison of given companies shows that the Hershey gives a highest return than Tootsie its return is 3.25 as compare to just 0.94 of Tootsie. So, the it is more attractive for investor than Tootsie. Free Cash Flow 90064-14767-17542 = 57755 778836-(14194+189689)-252263
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= 322681 Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because
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