Hershey Co (HSY)
Total 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 |
| Total assets | US$ in thousands | 12,946,900 | 11,902,900 | 10,948,800 | 10,412,200 | 9,131,840 |
| Total asset turnover | 0.87 | 0.94 | 0.95 | 0.86 | 0.89 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,202,300K ÷ $12,946,900K
= 0.87
The total asset turnover ratio for Hershey Co has shown fluctuation over the past five years, ranging from 0.86 to 0.95. This ratio measures the efficiency of the company in generating sales revenue relative to its total assets. A higher total asset turnover ratio indicates that Hershey Co is more effective in utilizing its assets to generate sales.
In 2020, Hershey Co's total asset turnover was 0.89, which slightly decreased to 0.86 in 2021, suggesting a potential decrease in sales generated per dollar of assets invested. This could indicate a less efficient use of assets in generating revenue.
However, in 2022 and 2023, the total asset turnover ratio improved to 0.95 and 0.94, respectively, indicating a better utilization of assets to generate sales revenue. This improvement suggests that Hershey Co effectively managed to increase sales relative to its asset base during these years.
In 2024, the total asset turnover ratio slightly decreased to 0.87, which could signify a small decline in the efficiency of asset utilization for revenue generation compared to the previous year. Overall, Hershey Co's total asset turnover ratio has demonstrated some variability over the past five years, reflecting fluctuations in the company's efficiency in generating sales relative to its total assets.
Peer comparison
Dec 31, 2024