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Financial Statement Analysis-Hershey & Tootsie

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Caitlin Locy

on 17 June 2014

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Transcript of Financial Statement Analysis-Hershey & Tootsie

The Hershey Company and Tootsie Roll Industries, Inc.
Financial Statement Analysis

Ratio Analysis
Vertical Analysis
Risks
Horizontal Analysis
Sales


Hershey is experiencing more growth
Admission Goals
More Male Students
Diversity
Higher Academic Profile
Focused Differentiation
"Visit Viterbo, Notice the Difference"
"Viterbo University is not for everybody, but we might be just right for you."
Liquidity
Activity/Efficiency
Solvency/Financial Strength
Profitability

Strengths
Catholic Franciscan Identity
Values
Nursing
M.A. in Education
Reputation
Strong majors

Liquidity
Activity/Efficiency
Solvency/Financial Strength
Profitability
References
How much candy do Americans eat each year?
Tootsie Roll Industries, Inc
1896- Leo Hirschfield

Dots, Charleston Chew, Blow Pop, Andes Mints, etc.

64 million tootsie rolls a day
The Hershey Company
1893-Milton Hershey

1900-Hershey Bar

Almond Joy, Mounds, Twizzlers, Reeses, Kit Kat, etc.

Sold in 90 countries
Hershey- 8%
Tootsie- 1.2% down
Gross Profit Margin
Hershey- 46%
Tootsie- 35%
Income from continuing operations and net cash from operating activities
International Sales
Net sales 15.7%
China, Brazil, and Mexico
Net income in 2007: $200 million
Net income in 2013: $800 million
Cost of Goods Sold
Tootsie Hershey
Deferred Compensation Expenses
Property, Plant & Equipment: 25%
Total Liabilities/Assets
Tootsie: 23%
Hershey: 70%

Tootsie is structured differently
Current Ratio:
Hershey: 1.77
Tootsie: 3.99
Industry: .69
Quick Ratio:
Hershey: .79
Tootsie: 2.03
Industry: .39
Current $/Debt:
Hershey: .83
Tootsie: 1.82
Optimum: 1.0
A/R Turnover:
Hershey: 15.2
Tootsie: 23.4
Inventory Turnover:
Hershey: 5.98
Tootsie: 11.3
Industry: 12.6
Asset Turnover:
Hershey: 1.41
Tootsie: .63
Industry: 1.70
Debt/Total Equity:
Hershey: 2.32
Tootsie: .23
Industry: 3.31
Times Interested Earned:
Hershey: 15.2
Tootsie: 904
$/Debt Coverage:
Hershey: .32
Tootsie: .53
Optimum: 1.0
Gross Margin:
Hershey: 45.9%
Tootsie: 35.2%
Industry: 34.7%
Profit Margin:
Hershey: 11.5%
Tootsie: 11.2%
Industry: 5.9%
Return on Assets
Hershey: 16.2%
Tootsie: 7.0%
Industry: 5.9%
Return on Equity:
Hershey: 61.6%
Tootsie: 9.1%
Industry: 11.7%
Economic
Competitive
Regulatory
Technological

Hershey? or Tootsie?
Both would be a good investment
Both are able to pay back debt
Hershey= more growth
Tootsie=less risky



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