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Ratios Analysis: Hershey

The Hershey Company is one of the world's leading producers of chocolates, candies,

and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey's consolidated balance sheets for 20X2 and 20X3 follow.

Hershey: Consolidated Balance Sheets Dollar Amounts in Millions 20X220X3Assets  Current Assets  Cash and Equivalents$728.3 $1,118.5 Receivables461.4 477.9 Inventories633.3 659.5 Deferred Income Taxes122.2 52.5 Prepaid Expenses and Other Assets168.3 178.9    Total Current Assets$2,113.5 $2,487.3 Property, Plant and Equipment, Net1,674.1 1,805.3 Goodwill588.0 576.6 Other Intangible Assets, net214.7 195.2 Other Assets164.5 293.0    Total Assets$4,754.8 $5,357.5 Liabilities and Shareholders' Equity  Current Liabilities  Accounts Payable$442.0 $461.5 Accrued Liabilities650.9 699.7 Accrued Income Taxes2.3 79.9 Short-Term Debt118.2 166.0 Current Portion of Long-Term Debt257.7 0.9    Total Current Liabilities$1,471.1 $1,408.0 Long-Term Debt1,531.0 1,795.1 Other Long-Term Liabilities668.7 434.1 Deferred Income Taxes35.7 104.2    Total Liabilities$3,706.5 $3,741.4 Shareholders' Equity  Common Stock359.9 359.9 Additional Paid-In Capital593.0 664.9 Retained Earnings5,027.6 5,454.3 Treasury Stock (at cost)(4,558.7)(4,707.7)Accumulated Other Comprehensive Loss(385.1)(166.6)Noncontrolling interests11.6 11.2    Total Shareholders' Equity$1,048.4 $1,616.1    Total Liabilities and Shareholders' Equity$4,754.8 $5,357.5 

Additional information for 20X3 is as follows (amounts in millions):

Total credit sales (all on credit)$7,146.1Costs of goods sold3,865.2Net income820.5

Required:

Next Level Compute the following ratios for 20X3. Provide a brief description of what each ratio reveals about Hershey.

  1. Return on common equity (Round your answer to three decimal places.) 
  2. Debt-to-assets (Round your answer to three decimal places.) 
  3. Debt-to-equity (Round your answer to two decimal places.) 
  4. Current (Round your answer to two decimal places.) 
  5. Quick (Round your answer to two decimal places.) 
  6. Inventory turnover days (Use 365 days. Round your answer to nearest whole number.)  days
  7. Accounts receivable turnover days (Use 365 days. Round your answer to nearest whole number.)  days
  8. Accounts payable turnover days (Use 365 days. Round your answer to nearest whole number.)  days
  9. Operating cycle (in days) (Use 365 days. Round your answer to nearest whole number.)  days
  10. Total asset turnover (Round your answer to two decimal places.) 


I just need help answering 1,5,6,7,8,9,10. Ive tried to solve but I don't know exactly what Im messing up on.

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