Tootsie Roll

1154 Words Nov 21st, 2011 5 Pages
The Tootsie Roll Expansion Project; Growth to Solidify the Future

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September 26, 2011
Jared Jones

The Tootsie Roll Expansion Project; Growth to Solidify the Future

“Everyone loves the flavor of a tootsie pop” has been a popular phrase for years, a commercial jingle that reminds everyone of the wonderful taste, a memory from childhood that brings people from miles around to local candy stores seeking Tootsie rolls, whether it is a lollipop or a tootsie roll chocolate, everyone one is familiar. Taking a corporation and expanding on it when it is already successful is a difficult concept but making a business better is something that we can and will do. Taking the Tootsie roll industry to the next level will require
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The higher the ratio the better the company stands with ability to pay loans. The four quarters for quick ratios in year one are as follows; 1.48, -.14, .25, 1.29, and year 2-4 are as follows; 3.26, 3.88, 5.11, 5.69 (NetMBA, 2010.)
Profitability Ratios The profitability ratio shows the ability for a company to generate profits. Ratios that are used calculating profitability of a company are return on assets and return on equity. The return on assets calculates the ability of a company to effectively use assets to generate income, the percentages per quarter in year one are; 76%, 22%, 34%, 37%. This shows profit during each quarter. In years two, three, and four the percentages are; 68%, 54%, 49%, 38%. These ratios show a slight decline but still a solid profit. The return on equity shows the amount of money earned per dollar investing into the company by shareholders. By quarter, year one return on equity is .81 .61 .28 .29, years two, three and four are all .32. These numbers show an above average return, the average return in the United States is between .10-.15, and over .20 is considered above average (Kennon, 2011.)
Solvency Ratio The solvency ratio is the ability for a company to repay debts shown in a percentage. The ratio shows if a business can meet goals of a long term loan by calculating the current and long term liabilities divided by net profit after taxes plus depreciation. In years one through four the

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