Using the financial statements for Tootsie Roll Industries (2019) please answer the following questions. (Link copied Below)
a. What was the profit margin for each of the last three years? Comment on any trend.
b. What was the gross profit ratio in each of the last three years? Comment on any trend.
***Use total revenue as a base in each of these calculations (as “net sales”). Further, for net income, use Net Earnings attributable to Tootsie Rolls Industries, Inc.
|profit margin||net income/total revenue||15.57%||10.96%||12.32%|
|profit margin is showing a declining trend in net income available to equity shareholders in year 2018 and a recovery is seen in year 2019 over the year 2018 but it is below the level of 2017.|
|Gross profit margin||Gross profit/total revenue||36.96%||36.26%||37.38%|
|A slight decline in gross profit margin is noticed in year 2018 but a rise is seen into year 2019, so gross profit percentage has increased over the year 2017 and 2018|
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