Financial Analysis - Tootsie Roll Essay

986 Words Mar 12th, 2010 4 Pages
The company that I chose to analyze is Tootsie Roll. Throughout my life I have always had somewhat of a sweet tooth and have been very intrigued in the process of business. Now I have the opportunity to look further into such a great company such as Tootsie Roll and really find out how the business is run and what type of work is invested in such a well known business. The ticker symbol for the Tootsie Roll Company is quite simple by using just two letters, TR. With this symbol it is easy to find different information regarding the company’s stock exchange and other finances. The stock exchange in which Tootsie Rolls shares are listed is the New York Stock Exchange (NYSE). According to Yahoo Finance, the current share price for common …show more content…
Tootsie Roll’s highest selling period was Halloween (which is common for most candy manufacturers) and focused on promotional programs to target consumers. Also, they changed up their packaging to adapt to the trends of the consumers and catch their eyes. I have reviewed the past two years liabilities and stockholders’ equity sections of Tootsie Roll Industries, Inc. and compared the balance sheets using Debt to Equity Ratio and Times Interest Earned. The calculations presented in thousands: The statement of cash flows breaks down the cash exchange of the long term debt for the past two years. Under the Financing Activities portion of the cash flows statement it shows the long term debt broken down intoproceeds from and repayment of bank loans. The calculations of the changes in the past two years are expressed below in thousands: Repayment of bank loan: (38,001) (98,400) -61.4 % (decrease) The footnotes described the interest rates that wereissued and also that “All bank loans outstanding at December 15, 2005 were paid in 2006”, which can be found under Note 3 – Bank Loan and Industrial Development Bonds. Tootsie Roll hastwo classes of common stock; Common Stock and Class B Common Stock. According to the footnotes under Note 2: Earnings per share, a brief description of

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