Project Template Comparing Tootsie Roll & Hershey

Project Template Comparing Tootsie Roll & Hershey - Go...

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Complete your Title page on this tab. Please include your name, the course, the date, your instructor's name, and the title for the Project. Go to Course Home tab and then Course Project for detailed Instructions and grading rubric.
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used for the Profiles on the Bibliography tab. Complete one paragraph profiling each company's business including information such as a brief history, where they are located, number of employees, the products they sell, etc. Please reference any websites you used Tootsie Roll Industries began in a small candy store in New York in 1896. Tootsie Roll is now headquartered in Chicago with operations throughout North America and with distribution channels in over 75 countries. Tootsie Roll has 2,200 full-time employees. Tootsie Roll sells the following branded candy: Tootsie Roll, Tootsie Roll Pop, Charms Blow Pop, Mason Dots, Andes, Sugar Daddy, Charleston Chew, Double Bubble, Razzles, Caramel Apple Pop, and Junior Mints. Tootsie Roll had 2007 net product sales of $493 million. Hershey Company was founded by Milton S. Hershey in 1893. Hershey is headquartered in Hershey, Pennsylvania and has 11,300 full-time employees. Hershey is famous for the Hershey Bar, Hershey's Kisses, Hershey's Bliss, Reese's, Twizzlers, Almond Joy, Kit Kat, and Ice Breakers. Hershey had net product sales of $4.9 billion for 2007.
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For Part 1:Use this Excel spreadsheet to compute ratios; show your computations for the six ratios listed under each part. The financial statements used to calculate these ratios are available in Appendix A and Appendix B of your textbook. Part 1 of the project: Tootsie Hersheys Earnings per share As given in the income statement $0.94 $0.96 Current ratio Current assets $199,726 = 3.45 $1,426,574 = 0.88 Current liabilities $57,972 $1,618,770 Gross Profit Ratio Gross profit $165,047 = 33.5% $1,631,569 = 33.0% Net Sales $492,742 $4,946,716 Profit margin ratio Net Income $51,625 = 10.4% $214,154 = 4.3% Net Sales $497,717 $4,946,716 Inventory Turnover Cost of Goods Sold $327,695 5.4 $3,315,147 5.3 Average Inventory $60,680 times $624,503 times Days in Inventory 365 days 365 = 68 365 = 69 Inventory turnover 5.4 days 5.3 days Interpretation and Comparison between the two companies' ratios (Reading the Appendix of Chapter 13 will help you) Comparing these numbers is not meaningful since the number of shares outstanding differs. Tootsie Roll has $3.45 in current assets for every $1 dollar in current liabilities while Hershey only has 88 cents. Tootsie Roll has much greater liquidity based on this ratio. Only product sales were used for the Tootsie Roll calculation since Hershey does not have rental and royalty revenue. This ratio indicates that Tootsie Roll has a slight edge for this profitability ratio because of its ability to maintain an adequate selling price above its cost of goods sold.
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