Hershey Co (HSY)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,955,600 | 10,318,600 | 8,933,440 | 8,149,720 | 7,986,250 |
| Property, plant and equipment | US$ in thousands | 3,239,820 | 2,769,700 | 2,586,190 | 2,285,260 | 2,153,140 |
| Fixed asset turnover | 3.38 | 3.73 | 3.45 | 3.57 | 3.71 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,955,600K ÷ $3,239,820K
= 3.38
Hershey Company's fixed asset turnover has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover implies better utilization of fixed assets.
The trend indicates a peak in 2022 with a ratio of 3.76, possibly suggesting improved efficiency in utilizing fixed assets that year. Subsequently, the ratio decreased to 3.37 in 2023, indicating a decline in the efficiency of generating revenue from fixed assets compared to the previous year.
Overall, Hershey Company has generally maintained a relatively stable range for fixed asset turnover, with values ranging from 3.47 to 3.76. This indicates that the company has been efficient in generating revenue from its fixed assets over the years, although there have been fluctuations in performance.
Peer comparison
Dec 31, 2023