Hershey Co (HSY)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,004,030 | 11,070,300 | 10,743,680 | 10,623,500 | 10,318,580 | 10,004,590 | 9,690,530 | 9,341,870 | 8,933,450 | 8,799,400 | 8,656,350 | 8,386,670 | 8,149,720 | 8,032,600 | 7,947,190 | 8,007,080 | 7,986,250 | 7,906,030 | 7,851,200 | 7,835,600 |
| Property, plant and equipment | US$ in thousands | 3,239,820 | 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 | 2,341,820 | 2,298,820 | 2,285,260 | 2,183,380 | 2,165,350 | 2,150,220 | 2,153,140 | 2,099,980 | 2,107,180 | 2,108,080 |
| Fixed asset turnover | 3.40 | 3.51 | 3.56 | 3.76 | 3.73 | 3.81 | 3.74 | 3.60 | 3.45 | 3.71 | 3.70 | 3.65 | 3.57 | 3.68 | 3.67 | 3.72 | 3.71 | 3.76 | 3.73 | 3.72 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,004,030K ÷ $3,239,820K
= 3.40
The fixed asset turnover ratio measures how efficiently Hershey Company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.
Based on the data provided, we can observe fluctuations in Hershey Company's fixed asset turnover ratio over the past eight quarters. The trend shows some variability, with values ranging from 3.37 to 3.85.
In Q1 2023, the fixed asset turnover ratio was 3.81, indicating that Hershey generated $3.81 in revenue for every dollar invested in fixed assets. This represents a relatively efficient use of fixed assets to generate sales.
Overall, Hershey has maintained a fairly consistent level of efficiency in utilizing its fixed assets to generate revenue in recent quarters, with the ratio averaging around 3.60 to 3.85. Monitoring this ratio over time can provide insights into the company's operational efficiency and asset utilization strategies.
Peer comparison
Dec 31, 2023