Hershey Co (HSY)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,202,260 | 10,971,830 | 11,014,330 | 11,430,130 | 11,164,990 | 11,160,220 | 10,858,380 | 10,740,680 | 10,419,290 | 10,093,080 | 9,724,770 | 9,341,610 | 8,971,340 | 8,830,450 | 8,690,440 | 8,408,350 | 8,149,720 | 8,032,600 | 7,947,190 | 8,007,080 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 3,156,060 | 3,014,880 | 2,822,240 | 2,769,700 | 2,622,590 | 2,590,830 | 2,592,630 | 2,586,190 | 2,370,190 | 2,547,890 | 2,298,820 | 2,285,260 | 2,183,380 | 2,165,350 | 2,150,220 |
| Fixed asset turnover | — | — | — | — | — | 3.54 | 3.60 | 3.81 | 3.76 | 3.85 | 3.75 | 3.60 | 3.47 | 3.73 | 3.41 | 3.66 | 3.57 | 3.68 | 3.67 | 3.72 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,202,260K ÷ $—K
= —
The fixed asset turnover ratio for Hershey Co has shown some fluctuations over the past few years. The ratio measures how effectively the company is generating sales revenue from its investment in fixed assets.
Between March 2020 and June 2021, the fixed asset turnover remained relatively stable, ranging between 3.57 and 3.75. This indicates that Hershey was able to generate around $3.57 to $3.75 in sales for each dollar invested in fixed assets during this period.
However, there was a notable dip in the ratio in September 2021, dropping to 3.41, which may suggest some inefficiency in utilizing its fixed assets to generate sales. The ratio then improved in the following quarters, reaching a peak of 3.85 in September 2022, indicating increased efficiency in asset utilization.
In the most recent data available, the fixed asset turnover ratio for Hershey Co was 3.54 as of September 30, 2023. This suggests that the company continues to effectively generate sales from its fixed assets, albeit slightly lower compared to the peak in 2022.
It is important for Hershey Co to monitor its fixed asset turnover ratio regularly to ensure optimal utilization of its assets and maximize sales generation efficiency.
Peer comparison
Dec 31, 2024