Hershey Co (HSY)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,202,300 | 11,165,000 | 10,419,300 | 8,971,340 | 8,149,720 |
| Property, plant and equipment | US$ in thousands | — | — | 2,769,700 | 2,586,190 | 2,285,260 |
| Fixed asset turnover | — | — | 3.76 | 3.47 | 3.57 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,202,300K ÷ $—K
= —
The fixed asset turnover ratio is used to measure how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio implies that the company is generating more revenue per dollar of fixed assets.
In the case of Hershey Co, the fixed asset turnover ratio has shown some fluctuations over the years. In 2020, the ratio was 3.57, indicating that for every dollar invested in fixed assets, the company generated $3.57 in revenue.
However, in 2021, the ratio decreased to 3.47, suggesting a slight decrease in efficiency in utilizing fixed assets to generate revenue. The ratio improved in 2022 to 3.76, indicating that the company was able to generate more revenue per dollar of fixed assets invested.
The data for 2023 and 2024 is missing, so it is difficult to draw a conclusion for those years. It would be crucial for the company to provide updated information for a more comprehensive analysis of its fixed asset turnover ratio.
Overall, the trend in Hershey Co's fixed asset turnover ratio shows some variability, but it is important for the company to consistently monitor and improve its efficiency in utilizing fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024