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The Hershey Co. is famous worldwide for its chocolate confectionsthe Hershey bar and those delightful Hershey Kisses. Tootsie Roll Industries is equally famous for its
The Hershey Co. is famous worldwide for its chocolate confectionsthe Hershey bar and those delightful Hershey Kisses. Tootsie Roll Industries is equally famous for its chewy Tootsie Roll and those flavorful Tootsie Roll Pops. Selected financial information about each company's performance in 2014 follows: Hershey Co. Tootsie Roll Industries Sales $7,422 million $540 million Net income $847 million $63 million Return on assets (ROA) 16.3% 7.0% Profit margin 12.1% 11.7% Asset turnover 1.35 0.60 Required: 1. Why is Tootsie roll so much less profitable than Hershey? 2. The industry-average ROA for confectioners is around 10%. Which company has the more valuable brand
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