Financial Analysis - Tootsie Roll

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 stock as of close February 22, 2008 is $24.22. Many investors look at trends in the share prices for common stock before making a decisionon which company to invest in. By looking at the historical prices on Yahoo Finance for Tootsie Roll, the trend in the price of the common stock for the past three years from January 1, 2005 to December 31, 2007 using the monthly closing price on average was: 2005: $30.63 2006: $29.81 2007: $27.76 As you can see, the prices have decreased slightly every year. However, in order to determine if this company would be a good investment I would have to compare Tootsie Rolls financial status to other competitors’financial status such as The Hershey Company. All the quantitative context of the financial analysis is important. However,the qualitative portion is not to be taken lightly. A great deal of credit (and blame) falls upon the leaders of the company. A company should consist of a strong Executive Board that is consistent in making good decisions for the sake of the company’s reputation along with financial health. Our economy is growing and changing rapidly therefore the Executive Board needs to be up to date with the latest trends for things such as strategic