Hershey Co (HSY)
Total 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 |
| Total assets | US$ in thousands | 11,902,900 | 10,948,800 | 10,412,200 | 9,131,840 | 8,140,400 |
| Total asset turnover | 0.92 | 0.94 | 0.86 | 0.89 | 0.98 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $10,955,600K ÷ $11,902,900K
= 0.92
The total asset turnover ratio for Hershey Company has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its assets to generate revenue.
In 2023, the total asset turnover ratio was 0.94, slightly lower compared to the previous year of 0.95. This suggests that Hershey Company generated $0.94 in sales for every $1 of assets during 2023.
Comparing to 2021 and 2020, where the total asset turnover ratios were 0.86 and 0.89 respectively, the company's asset utilization efficiency has seen improvement in recent years.
However, the total asset turnover ratio in 2019 was 0.98, which was the highest among the five years analyzed. This indicates that Hershey Company was more efficient in generating sales from its assets in 2019.
Overall, while there have been fluctuations in the total asset turnover ratio of Hershey Company over the past five years, it is important for the company to consistently focus on optimizing its asset utilization to drive revenue growth.
Peer comparison
Dec 31, 2023