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Analysis of the internal environment at tootsie roll industries

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1 Analysis of the Internal Environment at Tootsie Roll Industries William Valencia Coso Union University Analysis of the Internal Environment at Tootsie Roll Industries 2 Tootsie Roll Industries, founded in 1896 on the success of a specific item - the distinctive oblong piece of chewy, chocolate candy - has evolved to become one of the nation’s top confectionery firms, with a portfolio that includes some of the world’s greatest candy, chocolate, and bubble gum brands. Analysis of Income Statement Total revenue is one of the most prominent patterns visible in a typical income statement. While it declined from 2017 to 2018, overall revenue grew by $8.9 million from $518.9 million in 2018 to $527.1 million in 2019. However, from 2019 to 2020 the company experienced a 10.63% decline going from $527.1 million to $471 million. The major cause for this fluctuation is Tootsie Roll’s gross profit percentage throughout the past few years. They decreased the Cost of Goods Sold from $327.5 million in 2017 to $300.5 million in 2020. However, they did not lower COGS via operating expenses because their operational costs grew by 1.5% in 2019 compared to the prior year. That is, operational expenditures are the highest they have been in three years, but COGS are the lowest they have been in three years as well. Tootsie Roll must have managed to lower their product’s COGS beyond the managerial, operational, and general expenses. These explanations are simply hypotheses, but the ...
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