Hershey Foods vs. Tootsie Rolls
Investment:
Heshery Foods versus Tootsie Rolls Financial Comparison A comparison of 2004 Hershey’s and Tootsie Roll, questions needed to determine which company is better off: Are the company’s operations profitable?
To consider this I will be looking at the Income Statement. If the company’s revenue exceeds its expenses it will report net income or will report a net loss. This will report on the success or failure of the company’s operation by reporting its revenue and expenses.
Hershey Foods reports a net income of $590,879 and Tootsie Roll Industries report a net income of $64,174. Overall, both company’s report a net gain. However, Hershey Foods net income is larger than that of Tootsie Roll Industries by $526,705. Does the company rely primarily on debit or stockholders’ equity to finance its assets?
To consider this I will be looking at Balance sheet. Comparing the amount of debt versus the amount of stockholders’ equity to determine whether the company relies more on creditors or owner for it financing. This reports the company’s resource and claims to those resources. The two types of claims are liabilities and stockholders’ equity.
Hershey Foods reports a balance sheet of assets of $3,797,531, liabilities of $2,708,229 and stockholders’ equity of $1,089,302. Tootsie Roll Industries reports a balance sheet of assets of $811,753, liabilities $241,574 and stockholders’ equity $570,179. Hershey Food relies more on creditors versus Tootsie Roll whom relies on its own financing. How does the company’s earnings performance suggest performance?
A high measure suggests improved performance and low measure suggests weak performance.
Hershey Foods reports Earnings per share and earnings of $2.30 versus Tootsie Roll Industry earning of $1.23. Overall, Hershey Foods has a higher performance over Tootsie Roll Industry. Can the company meet its near-term obligations?
To consider this I will be looking at current assets and current liabilities.
Heshery Foods versus Tootsie Rolls Financial Comparison A comparison of 2004 Hershey’s and Tootsie Roll, questions needed to determine which company is better off: Are the company’s operations profitable?
To consider this I will be looking at the Income Statement. If the company’s revenue exceeds its expenses it will report net income or will report a net loss. This will report on the success or failure of the company’s operation by reporting its revenue and expenses.
Hershey Foods reports a net income of $590,879 and Tootsie Roll Industries report a net income of $64,174. Overall, both company’s report a net gain. However, Hershey Foods net income is larger than that of Tootsie Roll Industries by $526,705. Does the company rely primarily on debit or stockholders’ equity to finance its assets?
To consider this I will be looking at Balance sheet. Comparing the amount of debt versus the amount of stockholders’ equity to determine whether the company relies more on creditors or owner for it financing. This reports the company’s resource and claims to those resources. The two types of claims are liabilities and stockholders’ equity.
Hershey Foods reports a balance sheet of assets of $3,797,531, liabilities of $2,708,229 and stockholders’ equity of $1,089,302. Tootsie Roll Industries reports a balance sheet of assets of $811,753, liabilities $241,574 and stockholders’ equity $570,179. Hershey Food relies more on creditors versus Tootsie Roll whom relies on its own financing. How does the company’s earnings performance suggest performance?
A high measure suggests improved performance and low measure suggests weak performance.
Hershey Foods reports Earnings per share and earnings of $2.30 versus Tootsie Roll Industry earning of $1.23. Overall, Hershey Foods has a higher performance over Tootsie Roll Industry. Can the company meet its near-term obligations?
To consider this I will be looking at current assets and current liabilities.