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Finance and Accounting - Essay Example
The purpose of this paper is to examine the financial performance of Nestle Company and Hershey Co. by way of analyzing the financial results for the year ended December 31, 2005 and December 31, 2006. The comparison of the two companies is to be based on the information available which was based on the references…
The ratios as computed showed that these are the financial indicators distilling the relevant information with regards to the entity of business by quantifying the relationship among the selected items appearing on the financial statement. The ratios of the entity may also be compared with the different ratios of a different period and to the industry's ratios. These comparative analyses shown below were able to identify the trends that may be very significant with the investors, the lenders and at the same time other parties who are very interested. The profitability ratios of both companies are for purposes of measuring the income in relation to some base and the more general is due to profit wherein these are the results of many factors such as the operating decisions, the leverage and the other considerations necessary for both companies. The liquidity ratio or simply the solvency
Both companies have shown that they are good indicators in terms of current ratio because as compared with the last year's performance, both companies are doing very well. These ratios are designed for the purpose of highlighting the relationships considered to be meaningful between those financial data. ...