Tootsie Roll Industries much higher than Hersheys Company, Tootsie Roll Industries current Ratios is 3.45， Hersheys Company Ratios is 0.88，it prove Tootsie Roll Industries has much stronger ability than Hersheys Company to pay short term obligations. Because Tootsie Roll Industries current assets more than current liabilities, low values for the current or quick ratios (values less than 1) indicate that a firm may have a little difficulty meeting current obligations, the company may not be efficiently using its current assets or its short-term financing facilities，it also indicate problems in working capital management. Generally, a current ratio of assets to liabilities of 2:1 or more is usually considered to be acceptable，
Profit Margin Ratio
Tootsie Roll Industries Profit Margin Ratio is ...view middle of the document...
61，Hersheys Company Ratios is 9.8，it used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.
This is the ratio of the number of times that accounts receivable amount is collected throughout the year. A high accounts receivable turnover ratio indicates a tight credit policy. A low accounts receivable turnover ratio indicates a collection problem, part of which may be due to bad debts.
Times Interest Earned Ratio
Tootsie Roll Industries Times Interest Earned Ratio is 145.24, Hersheys Company Ratios is 3.87，both of them have ability to meet its debt obligations, both of them more than 1 It is calculated by taking a company's earnings before interest and taxes and dividing it by the total interest payable , indicates how many times a company can cover its interest charges on a pretax basis. Failing to meet these obligations could force a company into bankruptcy.
Tootsie Roll Industries Earnings Ratio 29.17, Hersheys Company Ratios is 41.04，A valuation ratio of a company's current share price compared to its per-share earnings. In the same industry, a high ratio suggests that investors are expecting higher earnings growth in the future compared to companies with a lower ratio. Hersheys Company have a better growth prospects.
| | Tootsie RollIndustries Ratios | Hersheys Company Ratios |
Current Ratio | Current assets | 3.45 | 0.88 |
| Current liabilities | | |
Profit Margin Ratio | Net income | 10.37% | 4.33% |
| Total Revenues | | |
Receivable Turnover Ratio | Net credit sales | 14.61 | 9.80 |
| Average Net Receivables | | |
Times Interest Earned Ratio | Net Income + Interest Expense + Tax Expense | 145.24 | 3.87 |
| Interest Expense | | |
Price/Earnings Ratio | Stock price per share | 29.17 | 41.04 |
| Earnings per share | | |